I am a small, craft distiller in the U.S. There is no good reason for craft spirits to be a part of retaliatory tariffs by the U.S. or EU in a trade dispute involving large companies that manufacture airplanes.
Our industry has been crippled through the closing of tasting rooms throughout the U.S. due to COIVID 19. As an industry, nearly half the revenue our businesses generate comes from on-site sales. To make matters worse, the spirits industry lives under antiquated laws on direct shipping to customers that vary from state to state, making it even harder to conduct business during the pandemic.
American whiskey and bourbon have become popular overseas. Exporting is a potential growth market for our craft industry.
In October 2019, twenty-five percent retaliatory tariffs have been imposed by the United States Trade Representative (USTR) on certain wines and spirits from the EU. Now USTR is proposing to raise those tariffs up to 100 percent and expand the categories of wine and spirits subject to retaliatory tariffs.
We should not be pawns in a trade war over commodities and manufacturing unrelated to spirits. Both the EU and the U.S. need to come to the negotiating table and re-establish a free trade regime for spirits as soon as possible.
Thank you for your consideration of these views.