Let's make our voices heard!
It’s inconceivable to me; however, it’s possible there may be even more tariffs on wine and food imports from Europe. This round could be significantly higher and would encompass all of Europe instead of only those countries directly involved with the Airbus subsidies. Scroll down below for details on how to send a comment directly to members of the Senate, House of Representatives and also the Office of United States Trade Representative (USTR). Please share this with all of your friends and family!
We’re currently enduing 25% tariffs on some of our favorite European wines. Included in the list are wines from France, Germany, and Spain, along with cheeses from France and Italy. How will this trickle down and affect us in the mountains of Western North Carolina? I’ve got your back on this one. My goal is to make sure that all of you get the best wine for your hard-earned dollars at the best price available.
Update
It’s looking like there will indeed be additional tariffs imposed on wine and food exports from Europe. It’s horrifying to think what the effect could be on all of the small business entities involved with European wine and food. This time, they are looking at imposing up to 100% tariffs on ALL wine, including sparkling, from ALL of Europe. Needless to say, this would have a devastating effect for all of us — especially the winemakers themselves. We’re talking about small independent family properties who just aren’t equipped to survive another round of punishment.
Below in italics is wording for a letter that you can use to write to the U.S. Trade Representative at the website they have created to take input on proposed tariffs.
1. Copy the italicized letter below. (Of course, please feel free to write your own)
2. Then click on the link above.
3. Paste the copied wording into the box provided for writing commentary. *Remember to put your name and address in the area reserved for them.
The Honorable Robert Lighthizer
U.S. Trade Representative
Executive Office of the President
600 17th Street, NW
Washington, DC 20006
Re: Opposition to Tariffs on Imported Wine from the European Union
Dear Amb. Lighthizer:
I am writing as a customer and consumer of imported and domestic wines who is concerned with the multiple rounds of tariffs that are being imposed and considered on wine from the European Union (“EU”). I strongly urge you not to punish me, or my fellow wine lovers, or hardworking wine retailers, for problems we didn’t cause. It’s unfair at face value. You should punish those responsible. Punishing Airbus and their suppliers and French digital services companies would be much more effective, as well as fair.
Beginning on October 18, 2019, the U.S. Government imposed a 25-percent tariff on certain French wine as part of retaliatory tariffs against the European Union (“EU”) after the World Trade Organization authorized retaliation for the EU’s failure to comply with WTO rulings on subsidies provided to Airbus. All the while Airbus itself was only issued a 10% tariff. I understand that a 100-percent tariff is proposed on French sparkling wine (consisting mostly of champagne) and that this tariff is part of the Section 301 duties imposed on imports from France as a result of the country’s Digital Services Tax (“DST”). Finally, on December 10, 2019, USTR proposed imposing tariffs of up to 100 percent on all wines from the EU.
Because of these import tariffs, the prices will go up dramatically for wine. Margins on wine are extremely small, and the sale of wine is highly regulated, with virtually every state imposing a three-tier distribution system with markups occurring at each tier of distribution. Thus, a 25-percent tariff on wine imports will likely result in a 50-percent increase and a 100-percent tariff on wine imports will likely result in a 150-percent increase in prices for a consumer like me.
There is no substitute for imports of wine from the EU. Wines from the EU are different from domestic wines and wines from other countries as a matter of consumer taste. In addition, because it takes many years to plant new grape vineyards and allow the vineyards to produce mature fruit that can be harvested to make wine, it will take at least a decade before the U.S. domestic wine industry could ever be in a position to begin replacing wine imports from the EU.
As a wine consumer, I do not understand why individual consumers like me and small U.S. businesses should suffer because of a dispute involving Boeing and Airbus or France’s digital services tax. Retaliatory tariffs on these matters should target Airbus and their suppliers who benefitted from the subsidies, and French digital services companies.
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