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US distillers dodge whiskey tariff on exports to Europe
Virginia’s whiskey distillers are raising a glass tonight after welcome news from Europe. Although it may be too little, too late for some. FOX 5's Josh Rosenthal has the story.
Virginia’s whiskey distillers are raising a glass tonight after welcome news from Europe. Although it may be too little, too late for some.
Here’s the backstory: in 2018, the Trump administration imposed tariffs on European steel and aluminum. Then, the E.U. hit back, levying taxes on several American products, including a 25 percent tariff on whiskey.
That tariff was ultimately suspended in 2022. However, it was set to come back – and double, to 50 percent – at the beginning of 2024.
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Lawmakers like Virginia senator Tim Kaine urged the Biden Administration to act, and just this week, the E.U. announced they were extending the suspension of tariffs at least until March 2025.
"Why not good news about whiskey at year end?," Kaine said Wednesday.
Catoctin Creek Distillery is based in Purcellville, Virginia.
Still, though, the good news isn’t exactly going down easy for some.
"We lost all of our European business to the tariffs," said Scott Harris, who along with wife Becky founded Catoctin Creek Distillery in Purcellville.
They said that before the tariffs kicked in, they did 11 percent of their business in Europe with plans to go to 25 percent. But because of the tariffs, their European business is gone.
"A bottle of our stuff for 75 euros went to 100 euros, and so people would simply shop for something else," Scott said.
"We’re just collateral damage," added Becky.
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Nevertheless, the Harris’ said they’re happy about the recent news and are now hoping for a permanent solution.
"The problem with trade wars is they introduce uncertainty," Scott said, "and they make our products uncompetitive overseas."