The tariffs will remain at 25 percent, stated the Office of the United States Trade Representative last week, and that’s a good thing for the wine and spirits industry. However, it is far too soon for cries of joy.
The U.S. was mulling slapping tariffs at a much higher level — perhaps as high as 100 percent — but decided to maintain the status quo.
Airbus is the entity the U.S. government is upset with, and that dispute is the cause for the current tariffs that are imposed on European wines, cheeses, and other items. The USTR’s office, in its Feb. 14 statement, added that the tariffs on Airbus will increase to 15 percent from the current 10 percent, effective March 18.
According to the Wine & Spirits Wholesalers of America (WSWA), referring to data from economists at John Dunham and Associates, under current tariff levels, the U.S. beverage alcohol industry could lose as many as 36,000 jobs, and awards of $1.6 billion in wages, which could cost the U.S. economy more than $5.3 billion in 2020.
“Our industry provides consumers with the most diverse selection of products in the world and supports hundreds of thousands of jobs across the country in an array of related industries,” said Michelle Korsmo WSWA president and CEO. “Our members offer products for every taste, budget and occasion and are already being negatively impacted by the imposition of retaliatory tariffs by China and the European Union on U.S-origin distilled spirits and wines – these tariffs will only increase that burden.”
The 25 percent tariff in place now apply to still wine with an alcohol content below 14 percent produced in France, Germany, Spain, and the United Kingdom. Wine from Italy, as well as all sparkling wine, is spared. The tariffs also effect single-malt Scotch whisky, whiskey from Northern Ireland, and cordials and liqueurs hailing from Germany, Ireland, Italy, Spain, and the U.K.
Stay tuned, because this trade dispute is far from over.
On a happier note, I sampled a number of wines recently that you should know about, including a Zinfandel and a Chardonnay from Frank Family Vineyards, an Italian red blend (40 percent Rebo, 40 percent Corvina, and 20 percent Merlot), and a Bordeaux blend that I’ve added to my inventory.
All of these wines are drinking wonderfully now, and the Château Malescasse (2016 vintage) will certainly reward you with some aging.
Drink well, with those you love.
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