The US bourbon industry, worth $9 billion annually, is facing a significant threat from President Donald Trump’s trade war. The industry’s biggest contributors, Kentucky distillers and exporters, are pushing for the return of zero-for-zero tariffs between the US and its trade partners.
A 50% tariff on American whiskey products, including bourbon, rye, and Tennessee whiskey, was set to return on April 1 but has been delayed by the EU until April 13. The delay provides a temporary reprieve for the industry, but distillers and industry groups remain cautious about the long-term implications.
“We urge the EU and US to reach an agreement that will return zero-for-zero tariffs for spirits trade,” said Chris Swonger, president of the Distilled Spirits Council of the United States. “We need a reciprocal deal to keep our industry out of these trade wars.”
The bourbon industry is not only a significant contributor to Kentucky’s economy but also employs thousands of workers and generates billions of dollars in revenue each year.
Kentucky-based Brown-Forman, maker of Jack Daniels, Woodford Reserve, and Old Forester, is one of the leading exporters of US spirits globally. The company has urged for reciprocal zero-for-zero tariffs to avoid economic volatility and maintain momentum.
“We’ve done this before,” said Lawson Whiting, CEO of Brown-Forman. “If it rolls out where they’re coming after American whiskey again, without a reciprocal deal, then the market gets very distorted.”
The US and EU have benefited from zero-for-zero tariffs since 1997. However, with the imposition of EU tariffs in 2018, American whiskey exports to the region plummeted by 20%, resulting in losses for the US spirits industry.
Industry groups are now pushing for a return to this tariff-free period, which would benefit not only the bourbon industry but also local farmers and workers involved in the production process.
Source: https://eu.usatoday.com/story/money/business/2025/04/02/kentucky-bourbon-industry-eu-trade-wars/82765247007