EU Bourbon Tariff Threatens Global Whiskey Harmony

A “Neat” Predicament: The Saga of Bourbon and the Big Bad EU Tariff

Hello there, bourbon aficionados and globe trotters! Kaelei Whitlatch here with a dash of intrigue and a splash of distilled drama. Have you heard the one about the EU bourbon tariff? It’s not a joke, it’s a potential 50% import tax that’s enough to make your favorite neat pour a tad bit… well, overpriced. In case you’re rubbing your eyes in disbelief, let me pour you the details – neat, of course!

The Heart of the Matter: distillers-association/” title=”EU's Bourbon Tariff Worries KY Distillers Association”>U.S. Bourbon‘s European Soirée Might Turn Sour

If we’re talking whiskey, Swisher, Iowa might not be your first thought – but hold onto your hats because this small town is shaking up some big news. The U.S. exports its liquid gold, bourbon, with pride, and the European Union, among others, has been a top customer. Don’t drop your glass now, but a potential 50% European Union tariff is lurking in the shadows, ready to gatecrash the party come January 1st.

Joking aside, let’s have a chat with Jeff Quint, the maestro behind Cedar Ridge Distillery – Iowa’s pride and joy, and the largest bourbon producer in the state. Jeff’s as baffled as a cat at a dog show, scratching his head over how bourbon got tangled up in this. “How bourbon got involved in this, you know, we’re all pretty confused,” he says, mirroring our collective bewilderment.

Bourbon in the Crosshairs: Retaliation Tariffs Take Aim

It’s all about tit for tat when it comes to international tariffs. The U.S. and the EU have been squabbling like old spouses over things like aircraft parts and aluminum. Now, retaliation tariffs have brought spirits into the firing line. Let’s not ignore the fact that the past two years have done wonders for U.S. spirit sales in the EU – a cool $100 million in increased exports isn’t chump change, folks.

Our friend Jeff Quint elaborates, “Cedar Ridge is the largest bourbon producer here in Iowa, but there’s obviously larger bourbon producers in the country, namely in Kentucky and Tennessee. The thing we have in common is all the bourbon we produce is produced from corn. The only people that should be as interested in the tariffs being eliminated as the distilling industry would be, I would say, the corn farmers around the country.”

Folks like Mitch McConnell and Rand Paul have whipped out their pens, signing a letter to the U.S. trade administrator. “There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties,” the letter says, obviously trying to keep the peace and the whiskey flowing.

Spirited Away: Hopeful Talks on the Horizon

Now don’t you worry your pretty little heads too much, dear readers, because there’s hope on the horizon. The Biden administration trade negotiations could pull a rabbit out of the hat and smooth things over with the EU. If not, well, let’s just say that European connoisseurs might have to get their bourbon fix elsewhere or shell out more dough. Quint isn’t waiting around for fate to decide, though; he’s rallying the Iowa Senators to lend their quills to the cause.

Cedar Ridge Distillery: Crafting Spirits and Hatching Plans

Back at the Cedar Ridge Distillery, where the magic (and distillation) happens, they’ve been pumping the brakes on sending their prized potion across the pond. Quint’s keeping his inventory close to home, which I suppose is good news if you’re nearby and fancy a tour filled with samples – just saying. “It’s very important to us in Iowa that as many people that can get their hands on a bottle of bourbon in the world, that they can do that,” Quint remarks with the noble air of a man who wants to share his craft with the world.

The Soju(clar)tion: Potential Paths to Boozy Bliss

The situation is as sticky as a spilled Old Fashioned, but there are a few paths we could stumble down, possibly with the aid of a trusty designated driver. First, the trade negotiations could yield a sweet deal, leaving tariffs in the dust. Second, we could see a gentleman’s agreement – a handshake over a glass of amber, so to speak – to keep those tariffs at arm’s length for spirits.

Third, and let’s hope it doesn’t come to this, our distilleries and corn farmers could hunker down for a drought in EU sales. But knowing the resilience of the American spirit (see what I did there?), I wager it won’t be long before we find another way to keep the barrels rolling. As for Cedar Ridge, they hope that lifting these tariffs would allow them to send even more bourbon love around the globe.

Conclusion: The Spirited Saga Continues

So, there you have it – a tale of ambition, craft, and the unpredictable world of international trade wrapped up in a neat package with a bow made of corn husks. As our cocktail hour comes to a close, keep an eye on those trade winds and cross your fingers that common sense and camaraderie can lift this looming EU bourbon tariff, for the sake of corn farmers, distillers, and fine bourbon lovers everywhere.

And hey, worst comes to worst – if you find yourself overseas with a hankering for a taste of home, remember that a little ingenuity goes a long way. Maybe it’s time to start the Bourbon Underground Railroad – smugglers in top hats and petticoats. Kidding, folks. Kidding. Or am I? Cheers!