While the U.S., UK and EU have suspended tariffs related to the Boeing-Airbus dispute, U.S. whiskeys are still subject to a separate 25% tariff in a dispute over steel and aluminum, and a coalition of 50 associations representing the entire three-tier chain urged the Biden Administration to secure the immediate suspension of that tariff in talks to be held this week.
The coalition pointed out that the EU and UK’s “continued application of 25% tariffs on exports of American Whiskeys—now in its third year–is having a devastating impact for U.S. exporters to our most important export markets; American Whiskey exports have declined by 37% to the EU and by 53% to the UK.”
“Urgent action is needed as the EU’s tariff on American Whiskeys is scheduled to double to 50% on December 1. If this is allowed to happen, it will further exacerbate the unlevel playing field in the EU market for American Whiskeys, which account for over 61 percent of total U.S. spirits exports,” the coaltion said in a letter to U.S. Secretary of Commerce Gina Raimondo and U.S. Trade Representative Ambassador Katherine Tai.
The coalition called attention to the EU’s public commitment to resolve the underlying dispute on steel and aluminum by the end of the year.
In addition, the group noted that the UK is reviewing its retaliatory tariffs on American products in connection to the steel and aluminum dispute and that an announcement is imminent. The UK’s proposed list retains American Whiskeys and includes American wine, which is not currently subject to tariffs.
The letter concluded, “we reiterate our request for the Biden administration to secure the immediate suspension of the EU and UK’s tariffs on American Whiskeys and ensure the UK does not impose additional tariffs on U.S. wine. We stand ready to support the administration’s efforts to rebuild our critical relationships with the EU and UK.”