The U.S. Trade Representative has placed 25 percent tariffs on high alcohol wine from France and Germany, the latest move in a long-running trade dispute between the U.S. and EU over aircraft subsidies.
Previously, the 25 percent tariff only applied to wines that were 14 percent alcohol or less. However, as of yesterday, tariffs will now be applied to those about 14 percent as well. Tariffs on wines from Spain and the U.K. will remain the same.
“This action further points to the need for the Biden administration to act quickly once in office,” said Ben Aneff, president of the U.S. Wine Trade Alliance, in a statement. “As we have pointed out, the challenge is their nominee for U.S. Trade Representative—Katherine Tai—will likely not be approved in time to oversee the next carousel date in mid-February. This would make the most likely scenario a “punt” until the following carousel date in August. We are working hard to tell the Biden transition team why they should not wait. We need to convince President-elect Biden that tariff relief should be a major priority of his first few weeks in office, and this is no small task.”
In addition, the U.S. Wine Trade Alliance recently sent a letter to President-elect Biden, signed by over 2,000 restaurants from every state, asking for the removal of these tariffs.