US-UK Joint Statement on Suspension of Tariffs

The US and UK just announced that tariffs on UK distilled spirits products due to the Airbus aircraft dispute will be suspended for a four month period, effective March 4, 2021, in order to ease pressure on the industry and promote a resolution to this ongoing issue. This is a positive step in overall normalization of trade relations but does not yet extend to the EU tariffs. Please also note that the UK’s tariff on American Whiskey still remains in place as this tariff is the result of a different dispute, under Section 232 steel/aluminum tariffs imposed by the USA. Nevertheless, this move will allow for focus on a more balanced settlement to the aircraft dispute and hopefully give businesses a chance to rebuild after a challenging year of COVID and tariff impacts. The items affected by this tariff suspension can be found below:

• 2208.70.00 – Liqueurs and cordials
• 2208.30.30 – Single-malt Irish and Scotch Whiskies
• 2204.21.50 – Wines other thank Tokay (not carbonated), not over 14% alcohol in containers not over 2 liters

WSSA, along with other industry associations, continue to push for the elimination of retaliatory tariffs on all distilled spirits, and thus promote the regrowth of industries in both countries. We are currently checking with CBP/US Customs to determine process and date of implementation of the suspension, and we will send out a report once we have confirmed details from CBP. To review the announcement by the USTR, please click here. As always, please reach out if you have any questions on this new development.