In 2018, the Trump administration imposed taxes on steel and aluminum from the European Union.

Outraged Europeans countered by imposing tariffs on motorcycles, bourbon, peanut butter, jeans and other American-made products.

But Saturday, after more than three years, the U.S. and EU reached an agreement that lifted the tariffs a month before they were scheduled to double from 25% to 50%.

“After three long years, it’s time to raise a glass,” Eric Gregory, president of the Kentucky Distillers Association, said in an email. “These unfortunate tariffs have slashed exports of Kentucky bourbon by 50% to the EU and the United Kingdom, costing distillers, industry partners and farm families hundreds of millions of dollars. Kentucky bourbon exports had enjoyed double-digit growth for a decade before the tariffs were imposed in 2018.

“Bourbon is one of Kentucky’s most historic and treasured industries, a $8.6-billion economic and tourism engine that generates more than 20,000 good-paying jobs each year with a $1 billion payroll and welcomes nearly two million people a year to the KDA’s world-famous Kentucky Bourbon Trail experiences.”

“We were very happy to hear that the tariffs have been removed on bourbon in the EU,” said Jacob Call, master distiller and Kentucky general manager for Green River Distilling Co. in Owensboro. “This has been an on-going battle for the last several years. I would like to salute the Kentucky Distillers Association for their efforts in working valiantly to get these tariffs removed from one of Kentucky’s signature industries.”

“Here at Green River Distillery, we do ship a good amount of bourbon via tanker into the EU, as well as other countries around the world. With the removal of the tariffs, we hope to expand the tanker business as well as our ever-growing bottled goods business.”

In 2018, when the tariffs began, the company said that more than half of the 72,000 barrels of bourbon it was then producing each year was exported.

“Kentucky distillers also are in the middle of a $5.1-billion building spree to meet the growing global thirst for America’s only native spirit,” Gregory said. “There are now a record 10.3 million barrels of bourbon aging in Kentucky, the most in the commonwealth’s 200-year distilling history.”

Fortune.com reported, “National security adviser Jake Sullivan, U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo announced the agreement Saturday. They said that the tariffs won’t be removed entirely, but that some quantity of European steel and aluminum will be allowed to enter the U.S. without tariffs under the deal.”

“We were able to reach an agreement whereby the EU will drop their retaliatory tariffs (on American goods),” Raimondo said.

The agreement would ensure “that all steel entering the U.S. via Europe is produced entirely in Europe,” Raimondo added.

The story said, “This back-and-forth hurt European producers and raised steel costs for American companies.”

Source: Messenger-Inquirer