Home Stock Biden must step in to stop massive tariff hike on US liquor: lawmakers

Biden must step in to stop massive tariff hike on US liquor: lawmakers


The Biden administration should take action to avoid a massive tariff hike on American liquor that could hit small distilleries and increase prices for consumers, a coalition of lawmakers from both parties said on Wednesday.

At least 30 members of the House of Representatives signed a letter to Treasury Secretary Janet Yellen urging her to reject a ruling by the World Trade Organization (WTO) that could raise tariffs on U.S. spirits like bourbon, whiskey, and vodka by up to 25 percent.

The ruling comes as part of a dispute between the United States and the European Union regarding subsidies for European aircraft giant Airbus and U.S. rival Boeing. The U.S. Trade Representative has since authorized President Joe Biden to impose tariffs on certain goods and services from the EU in response to the Airbus subsidies.

The lawmakers noted that the US alcohol industry supports over 650,000 American jobs and adds over $167 billion to GDP each year. The tariff could hurt small producers who are already struggling due to the economic fallout from the pandemic.

The lawmakers urged the Biden administration to “negotiate a solution that is fair to both sides and does not devastate the U.S. alcohol industry, for the sake of American workers and consumers.”

The Biden administration has yet to issue a response.

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