Tariffs on U.S. Rum, Brandy and Vodka Suspended for Five Years

This week, the U.S. reached separate deals with the U.K. and EU in the WTO Boeing-Airbus Dispute, which includes agreements to suspend all tariffs imposed in connection with the disputes for five years.

The tariff suspension applies to rum, brandy and vodka from the U.S. From the U.K., it applies to to Single Malt Scotch, Single Malt Irish Whiskey from Northern Ireland, liqueurs and cordials, and certain wines from the U.K. From the EU, it applies to liqueurs and cordials from Germany, Ireland, Italy and Spain, on certain Cognacs and other grape brandies from France and Germany.

Note that this agreement does not address the EU and U.K. tariffs on American Whiskeys, which are related to a separate dispute on steel and aluminum. 

The Toasts Not Tariffs Coalition, which is made up of 50 associations (including the American Craft Spirits Association) representing the entire three-tier chain of the U.S. alcohol industry, released the following statement on Thursday.

“We commend the administration’s tremendous progress in resetting the important trading relationships between the U.S., EU and U.K., which have been instrumental for the growth of the hospitality sectors on both sides of the Atlantic.

“Securing a long-term tariff suspension in this dispute provides U.S., EU and U.K. producers, importers, exporters and distributors of wines and spirits, as well as bartenders, restaurants, bars and other on-premise establishments with much-needed certainty, many of which have been negatively impacted by the pandemic.

“The Toasts Not Tariffs Coalition hopes these important developments will set the stage for the prompt removal of the 25% tariffs on American Whiskeys to the U.K. and EU. Having recently entered the third year of retaliatory tariffs on American Whiskeys to these two key markets, it is critically important for our producers, our farmer suppliers and the hospitality sector across the U.S., EU and U.K. that we return to the zero-for-zero agreement on trade in distilled spirits.

“We fully appreciate the Biden administration’s commitment and ongoing efforts to secure a prompt return to duty-free trade for all distilled spirits and an agreement to refrain from imposing any new tariffs on wine.”

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