Why The Wine World Is Freaking Out About New Tariffs

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Trump’s wine war has the industry bugging out. U.S. importers, industry watchers, and European producers are fretting about the impact of a proposed 100 percent tariff on European goods, including wine, that would go into effect in early 2020. That’s … a hefty tax on your favorite Chardonnay. But what’s it mean for everyone involved? Here’s what you need to know.

Wait, didn’t I just hear about 100 percent tariffs on wine a few weeks ago?
That was only for French wine. On December 2, the Trump administration announced it could — if it pleased — put 100 percent tariffs on Beaujolais and the like in response to France’s tax on American tech companies like Google and Facebook. (Those companies don’t have much physical presence in France.) The tariff was recommended by the Office of the United States Trade Representative, after an investigation into France’s tax.

So this new proposal affects other countries?
Yes. The proposed tariff would affect all European Union nations, which means it could affect all those affordable bottles of funky Croatian wine that you’ve been getting into lately.

Why are they messing with my vino?
It’s the latest punch thrown in a fight between the U.S. government and E.U. over subsidies for Airbus; in October, the World Trade Organization found the E.U. guilty of unfair subsidies.

Right, didn’t they already impose a tariff in response to that?
This tariff is an expansion on the 25 percent tax that the Trump administration imposed back in October. That tariff only affected four countries.

By Chris Crowley
December 20, 2019
Source and complete article: Grubstreet.com