U.S. Spirits Industry Urges UK To Drop Tariff on American Whiskey
-American Whiskey remains the only spirits category subject to tariffs between the UK and U.S.-
WASHINGTON – The Distilled Spirits Council of the United States (DISCUS) submitted official comments to the UK Department of International Trade underscoring the severe impact its retaliatory tariffs on Bourbon and other American Whiskeys are having on the UK’s hospitality and Scotch Whisky industries and urging for their immediate removal.
DISCUS noted that the UK’s imposition of a 25 percent tariff on American Whiskeys makes it the only spirits category subject to tariffs in connection to ongoing transatlantic trade disputes following the recent five-year suspension of tariffs on UK and U.S. distilled spirits, including Scotch Whisky, in the WTO Boeing-Airbus disputes.
Since the UK first imposed its tariffs on American Whiskeys in June 2018, American Whiskey exports to the UK declined by 53 percent between 2018-2020.
DISCUS encouraged the UK government to “follow through on Prime Minster Boris Johnson’s November 2019 statement regarding the tariff on American Whiskeys during a campaign visit to a Scotch Whisky distillery when he said ‘once we come out of the EU, those tariffs will not apply.’”
“In addition to the devastating impact on U.S. exporters of all sizes, these tariffs are also harming the Scotch Whisky industry, the UK hospitality sector and impeding our progress in addressing shared goals to improve market access for spirits in other key markets,” DISCUS stated in the comment.
DISCUS emphasized that eliminating the tariff on Bourbon and other American Whiskeys will support the recovery of UK restaurants and bars forced to shut down or curtail business during the pandemic. Nearly 10,000 licensed premises in the UK were forced to close in 2020 due to the pandemic according to the Bourbon Alliance, a coalition of importers, distributors, hospitality workers and spirits consumers in the UK who are urging the UK government to lift these tariffs as soon as possible.
“The U.S. and UK distilled spirits sectors are deeply interconnected. UK-based spirits companies have made considerable investments in U.S. distilleries, import American Whiskeys and other U.S. spirits into the UK to complement their existing brands.”
“The immediate restoration of tariff-free access for Bourbon and other American Whiskeys is essential to our industry’s ability to recover from the pandemic and support the over 300,000 people jointly employed in the American Whiskey and Scotch Whisky industries,” DISCUS stated.
DISCUS concluded its comment stating, “we hope that the recent positive momentum to re-set the important UK-U.S. trading relationship will lead to the prompt and permanent removal of the UK’s tariff on Bourbon and other American Whiskeys.”
-30-
Background:
- The comments were submitted as part of the UK Department of International Trade’s consultation on its tariffs in response to U.S. steel and aluminum tariffs.
- Additional information about the timeline and impact of UK and U.S. tariffs on distilled spirits can be found here.
