Whiskey tariffs are over. The UK and US made resolutions to end tariffs on both sides. (Below are statements, facts and quotes from industry members.)

Since the imposition of the 25 percent retaliatory tariff on American Whiskeys, exports to the UK, our fourth-largest market, have declined by 42 percent, from $150 million to $88 million (2018-2021). In October 2021, the U.S. and the EU announced an agreement to suspend for two-years the EU’s 25 percent retaliatory tariff on American Whiskeys in the steel-aluminum dispute.

In June 2021, the U.S. reached separate agreements with the EU and UK in the WTO Boeing-Airbus disputes to suspend tariffs for five years on U.S. rum, brandy and vodka, Single Malt Scotch, Single Malt Irish Whisky from Northern Ireland, liqueurs and cordials from the UK, Germany, Ireland, Italy and Spain, and certain Cognacs and other grape brandies from France and Germany.

“Distillers throughout the United States are cheering the end of this long tariff nightmare. We toast the Biden administration for its resolve in bringing a stop to these punitive tariffs on American Whiskeys and securing the return to duty-free trade in spirits across the Atlantic.

“With the removal of the UK’s debilitating retaliatory tariffs on American Whiskey exports, U.S. distillers are ready to fire up the stills and resume sharing the special taste, heritage and quality of America’s native spirit with our UK consumers.

“From day one, the Biden administration made it a priority to reset the relationship with the EU and UK, two of our most important allies and trading partners. The successful resolution of two separate and complicated trade disputes that saddled distilled spirits on both sides of the Atlantic with tariffs could not have been possible without the strong leadership of Secretary Raimondo, Ambassador Tai and their teams at the Departments of Commerce and Office of the United States Trade Representative.

“We also appreciate the longstanding support from the U.S. Department of Agriculture and Secretary Vilsack for highlighting the negative impact retaliatory tariffs have on value-added agriculture exports, including distilled spirits. American Whiskey producers have a close relationship with their farmer partners who are also hailing an end to these devastating tariffs.”

Distilled Spirits Council President & CEO Chris Swonger

After a four-year dry spell, it’s time to raise a toast.

The Kentucky Distillers’ Association and its 50 member companies today congratulated United States and United Kingdom trade negotiators on reaching a deal to drop retaliatory tariffs on Kentucky Bourbon and American Whiskey. 

Imposed in 2018, the tariffs reversed what had previously been tremendous growth in Kentucky Bourbon exports to the U.K., costing distillers, industry partners and farm families hundreds of millions of dollars. 

Bourbon is one of Kentucky’s most historic and treasured industries. It is a $9 billion annual economic and tourism engine that sustains 22,500 good-paying jobs in the Commonwealth with a $1.23 billion payroll.

Kentucky distillers also are in the middle of a 10-year, $5.2 billion building spree to meet the growing global thirst for America’s only native spirit. In the next four years, the Bluegrass State’s distilleries expect to invest $3.3 billion in new facilities and expansions of existing operations. 

There are now more than 10.3 million barrels of Bourbon aging in Kentucky, a record amount.

The KDA thanks the Biden Administration’s steadfast leadership including direct negotiations by U.S. Secretary of Commerce Gina Raimondo. As well, the KDA recognizes and appreciates the critical roles of U.S. Senate Minority Leader Mitch McConnell, Kentucky Gov. Andy Beshear, Congressman John Yarmuth and the rest of the Kentucky delegation for working to resolve this years-long trade dispute and to restore fairness in the U.K.’s market for Kentucky’s signature distilled spirits industry.

With the suspension of these tariffs, we look forward to rekindling bourbon enthusiasm in the U.K. and helping our legendary distillers further share the finest Bourbon for all the world to enjoy.

Eric Gregory, President of the Kentuckys’ Distillers Association

“Today’s announcement that the rebalancing measures on US whiskies are to be lifted is very welcome news. The end of these tariffs will provide great encouragement to UK spirits importers, and a significant boost to the UK hospitality industry as it recovers from lockdown.

British drinkers will once again have a wider selection of world-class whiskies to choose from and lifting tariffs will encourage greater investment in the UK spirits industry by the US. Whiskey drinkers on both sides of the Atlantic will raise a glass to today’s announcement.” — Miles Beale, Chief Executive of The Wine and Spirit Trade Association