Across the United States and the European Union, Whisky and Whiskey collections of all their various and sundry varieties have just automatically increased in value. Retaliatory tariffs of 25% on all Scotch along with European liqueurs and cordials, as well as Irish whiskey was exerting downward pressure on business opportunities across the pond for three years, but the tariff is now ending. The initial steel-aluminum trade dispute that wrought the punitive tariff has been resolved, making them unnecessary. Many in the industry on both sides of the customs line are rejoicing.
According to BeverageDynamics,
“Kentucky distillers are in the middle of a $5.1-billion building spree to meet the growing global thirst for America’s only native spirit,” says Kentucky Distillers’ Association President Eric Gregory, in a press release. “There are now a record 10.3 million barrels of bourbon aging in Kentucky, the most in the Commonwealth’s 200-year distilling history.”
“The Kentucky Distillers’ Association and its 51 member companies are thrilled at the announcement that the US and the E.U. have agreed to remove retaliatory tariffs on Kentucky bourbon and American whiskey,” he adds. “And it couldn’t have come at a better time: the 25% tariff was set to double on Dec. 1.” If a 25% tariff was placing a chill on international shipments of scotch, whisky, and bourbon, a 50% hit would surely freeze them, or slow them to a crawl.
Finally, The Whiskey World Can Drink, And Breathe Without Tariffs
Jake Sullivan, U.S. Trade Representative Katherine Tai, and U.S. Commerce Secretary Gina Raimondo announced the Article 232 tariffs on steel-aluminum wouldn’t be dropped completely, however, a set amount would be allowed to enter the US tariff-free. In return the European nations are reducing their own retaliatory tariffs which were isolating Bourbon distilleries from the global market.
Kentucky Governor Andy Beshear told the press that the announcement to remove tariffs on Kentucky bourbon is “great news.”
“Bourbon is a $8.6 billion industry that provides 20,000 jobs to Kentuckians,” the governor tweeted. “Thank you to @SecRaimondo and the Biden administration and all those who helped make this win a reality for the commonwealth.”
Here’s to the good health of the Whiskey distilleries and farmers! Cheers!