Senators, Industry Group Lament Uncertainty Around Impact of Tariffs on Spirits
Sens. Tim Kaine, D-Va., and Rand Paul, R-Ky., expressed frustration this week with the potential impact on the U.S. spirits industry from the Trump administration's tariffs, saying they will continue fighting to repeal duties introduced through both the International Emergency Economic Powers Act and Section 232.
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Speaking at an event hosted by the Cato Institute, Paul said that he has yet to find a constituent of his in favor of the tariffs and that "the bourbon industry absolutely hates them," because bourbon is an "easy target" for retaliatory tariffs. He added that almost every industry -- including car manufacturers like General Motors, Toyota and Ford, which operate in Kentucky -- is against the tariffs.
Kaine agreed, saying the imposition of the duties "engenders retaliatory tariffs" on products like wine and whiskey. "The retaliation issues end up being very, very painful," he said.
Distilled Spirits Council CEO Chris Swonger, in a July 31 statement, said the lack of an agreement between the U.S. and the EU on spirits is "extremely disappointing and utterly exasperating." He urged Trump to "quickly resolve this issue" and said that a "permanent return to zero-for-zero tariffs on spirits with the European Union" is critical.
Kaine told International Trade Today that the EU trade deal "might be better than no deal," but that the "economic impact even of a more acceptable deal is still unacceptable." He promised to take action to repeal all forms of tariffs, but he said his focus is on those imposed through the IEEPA, because they "are the ones that guarantee us a straight and prompt path forward."
During the event, Kaine said that while "tariffs do have a place," the use of Section 232 tariffs is "particularly problematic" because it is "disrespectful" to allied countries. He said that he has challenged previous IEEPA measures and "we're going to keep doing that, even after the deals and the lawsuits."
Paul said "we have a bill to repeal all of the different [tariff] authorities" from the last 50-60 years, including Section 232 and IEEPA. "Because essentially, there is no vote, there is no representation, so I think we should yank it all back. ... I think we vote on it."
Kaine acknowledged that his efforts face an uphill battle in Congress. "Will we be able to get colleagues to go with us or not? You know, that's a real tough -- it's a gantlet. You got to get it through both houses and then bypass the veto."