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The punitive tariffs announced by the US government last night are causing concern and unrest in the global wine industry. Wine imports from the EU will now be subject to tariffs of 20 percent, while Chile, Argentina, and Australia must expect ten percent. Other wine-producing countries such as South Africa (30%), Israel (17%), and Switzerland (32%) are also affected.
Although the tariffs of 200 percent threatened by US President Trump a few weeks ago have not yet materialized, industry associations in France and Italy are warning of significant economic consequences.
The French wine and spirits industry is preparing for potential export losses of 800 million euros to the USA. This was announced by the French association for wine and spirits in a statement. The tariffs would not only affect French exporters but also American wine and spirits importers, wholesalers, restaurateurs, and retailers. Especially importers and wine merchants, who calculated with tight margins, would be forced to pass the tariffs on to consumers, explained Jean-Marie Fabre, president of the independent winemakers of France. Price increases at the expense of US consumers are unavoidable.
Industry representatives are now hoping for a diplomatic solution to avoid further escalation of the trade conflict and stabilize global wine trade. However, a change of mind by the US government is unlikely: "This is not a negotiation; this is a national emergency," said a Trump advisor following the announcement when asked by a reporter whether the affected countries could still prevent or reduce the tariffs. The White House officially stated: "The tariffs will remain in effect until President Trump determines that the threat posed by the trade deficit and the underlying unequal treatment has been eliminated, resolved, or mitigated."
EU Commission President Ursula von der Leyen announced a united response from EU member states early this morning. France's government spokesperson Sophie Primas stated that the EU will also target US services in the future, including major tech companies like Google, Apple, Facebook, Amazon, and Microsoft. Furthermore, a reconsideration of access rights for US companies to European public tenders is being examined.
How the US government will respond to the announcements from Europe is currently uncertain. There could be further escalation and the already threatened higher punitive tariffs of up to 200 percent.
(ru / New York Times, FAZ, Vitisphere, Food & Wine)
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