U.S. Senator Rand Paul states that the bourbon industry disapproves of being a focal point in domestic trade disputes
The bourbon industry in the United States, particularly in Kentucky, is facing challenges due to the ongoing trade dispute between the U.S. and the European Union (EU). The U.S. enforced a 15% tariff on EU wine and spirits starting August 1, 2025, prompting the EU to retaliate with a 25% tariff on American whiskey, including bourbon.
According to Senator Rand Paul of Kentucky, the bourbon industry is economically vital, supporting over 23,000 jobs and generating $9 billion annually. He has been vocal about his concern for the industry, stating that it should be immune to tariffs.
The EU's retaliatory tariffs on bourbon stem from prior trade disputes dating back to 2018. This has been a source of concern, as it impacts American exports and jobs in the hospitality sector.
Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, has expressed a desire for spirits to be placed on a tariff exemption list. He has also provided figures showing that Europe is America's top client for spirits, importing approximately $1.2 billion in U.S. spirits in 2024.
The EU's top exports to the U.S. include alcohol, totaling approximately $10.5 billion in 2024. Swonger has stated that eliminating tariffs or placing spirits on a tariff exemption list would be ideal for trade negotiations.
Industry representatives and trade groups are urging President Trump to negotiate a deal restoring the zero-for-zero tariff status for spirits to support growth and recovery of the sector in both markets. However, as of early August 2025, no such resolution has been reached, and the situation remains characterized by these mutual tariffs and ongoing negotiation efforts scheduled for forthcoming months.
WhistlePig Whiskey founder Raj Bhakta has discussed President Donald Trump's tariffs, expressing concern about the impact on the bourbon industry. He is not alone in his concerns, as the trade uncertainty continues to affect global booze markets.
It is worth noting that Kentucky is the epicenter of the bourbon industry, producing 95% of the world's supply. Despite past attempts by Senator Paul to secure exemptions for businesses, including for bourbon, he has not had much success.
The ongoing trade dispute between the U.S. and the EU has disrupted previously tariff-free trade and created tensions, with industry groups on both sides pushing for exemptions or tariff reductions in upcoming negotiations. The situation remains fluid, with both sides aiming to secure favorable trade deals amid the tariffs.
- The ongoing trade dispute between the U.S. and the EU, specifically the retaliatory tariffs on bourbon, has raised concern in the general-news arena, as it impacts American markets and jobs in the economy, such as the bourbon industry, which is economically vital, supporting over 23,000 jobs and generating $9 billion annually.
- Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, has advocated for spirits to be placed on a tariff exemption list, given that Europe is America's top client for spirits, importing approximately $1.2 billion in U.S. spirits in 2024, and because eliminating tariffs would benefit trade negotiations and the recovery of the spirits markets.
