Kentucky’s bourbon industry could see a massive tariff on one of the state’s signature products if the Biden Administration and the European Union don’t reach an agreement. The trade war that started during the Trump Administration and led to a 25% tariff on distilled spirits was paused three years later – but the ceasefire ends at the end of the year.
“Not only does the proposal expire on Jan. 1, if a deal hasn’t been reached, it will double to a 50% tariff on bourbon, on American whiskey, which would be absolutely devastating for our industry,” said Eric Gregory, president of the Kentucky Distillers Association.
Gregory said Kentucky’s congressional delegation and Gov. Andy Beshear are working with the Biden Administration to avoid that scenario. The trade war began when then-President Trump imposed tariffs on imported aluminum and steel, but President Biden hasn’t satisfied EU leaders on steel and aluminum and the 50% tariff on distilled spirits is less than three weeks away.
“We’ve done about all we can, we’ve sounded the alarms. We have contacted as many people that we know, multiple times. But these decisions are made at such a high level. And trade negotiations are always very sensitive anyway.”
Gregory said he’s cautiously optimistic a deal will be reached.
This story is republished from WEKU. Read the original.
John McGary is a Lexington native and Navy veteran with three decades of radio, television and newspaper experience. He comes to WEKU from The Woodford Sun, where he was editor while covering government meetings, reporting on community events and taking photographs. At the Sun, he won multiple awards for news and feature stories and columns. At WLEX-TV, John won a Midwest Regional Emmy for an investigative story about illegal dumping and in 2003, was named Best Television Reporter by the Kentucky Associated Press. In the Navy, he was named Print Journalist of the Year once and Navy Broadcaster of the Year twice. John’s radio experience includes news and starting a radio magazine show at NTC Guantanamo Bay, Cuba and co-hosting a morning news/talk show in Owensboro, Ky. while working for The Owensboro Messenger-Inquirer.
