Tag: tariffs

U.S. Imports Of French Wine And Spirits Soar

After French drinks export shipments to the U.S. dropped significantly in 2020 due to tariffs—whose five-year suspension was announced this past Tuesday—exports have been rebounding strongly in the first four months of 2021. In this calendar year through April, U.S. imports of wine and spirits from France leapt 25% and 13% in volume terms respectively, according to French government agency BusinessFrance. French beer and cider also registered gains during the period.

Provence is now the single-largest region among French wines exported to the U.S. and increased 15% through April in volume terms, driven by ongoing growth for rosé (+17.5%). But the fastest-growing wine region is the Languedoc, which soared 86% year-to-date. Gains were recorded nearly across all segments as vermouth exports to the U.S. rose 41% year-to-date while Champagne surged 48%. Veuve Clicquot and Moët & Chandon together comprise over two-thirds of the Champagne market in the U.S.—according to Impact Databank—and bucked the trend last year by registering volume gains during the pandemic.

With the exception of vodka (-37% year-to-date), imports of French spirits also recorded impressive increases through April. French liqueurs soared 47% in volume terms, while the largest segment, Cognac, rose 49%. After crossing the 5-million-case mark last year, Hennessy Cognac became one of the 10 largest-selling spirits overall in the U.S. market for the first time. Hennessy and Rémy Martin, which is also growing strongly, comprise well over three-quarters of the Cognac market in the U.S., according to Impact Databank.—Juan Banaag

Source: Shanken News Daily: Exclusive news and research on the wine, spirits and beer business

Trump Keeps Tariffs on European Wines in Place

Trade Representative says 25 percent duties will remain in place for most French, Spanish and German wines; importers and merchants say the tariffs are killing American jobs

U.S. Trade Representative Robert Lighthizer had no good news for wine consumers last night. The 25 percent tariffs his office (USTR) imposed on most French, German, Spanish and UK wines nearly ten months ago will remain in place for the foreseeable future, forcing wine lovers to pay more and inflicting economic distress on importers, retailers and restaurateurs just as the hospitality industry grapples with the economic downturn triggered by COVID-19. Continue reading “Trump Keeps Tariffs on European Wines in Place” →

European Products and French Wine: Le Maire

PARIS — The United States government must remove tariffs imposed on European products such as French wine, said French Finance Minister Bruno Le Maire on Friday.

Le Maire was commenting after European planemaker Airbus made what Airbus described as a final step aimed at halting a transatlantic trade war over billions of dollars of aircraft subsidies.

Source: NY Times |Reporting by Leigh Thomas; Editing by Hugh Lawson

Reaching the bottom of the barrel: Coronavirus pandemic batters European wine production

 

It’s an ancient beverage turned cultural icon, so cherished in France that the legendary Victor Hugo once provocatively wrote: “God made only water – but man made wine”. Aside from being a staple at many family dinner tables, wine is also a massive European industry – and one that’s going through its own coronavirus-induced crisis. This in a sector that was already battling against 25% tariffs imposed by Donald Trump in 2019 that have seen exports slump.

Source: Reaching the bottom of the barrel: Coronavirus pandemic batters European wine production – Talking Europe

French wine, cheese targeted in latest Trump trade fight

French wine tariff

Industry groups are sounding the alarm on President Trump’s proposal to hit $2.4 billion in French goods with tariffs, warning that the latest trade salvo will affect a broad array of goods and its effects fall on U.S. consumers and small businesses.

The administration has proposed tariffs on a wide number of French products, including cheese, sparkling wine and Champagne, beauty products, handbags and home goods, in retaliation for a French tax on online services that targets American tech giants such as Google and Amazon.

Trade watchers warned the scope of the tariffs would be broad and lead to stark price hikes for consumers.

In 2018, the average tariff rate on French imports was 2.9 percent, according to the National Retail Federation (NRF). Under Trump’s tariffs, new taxes could be up to 100 percent for many goods. Continue reading “French wine, cheese targeted in latest Trump trade fight” →

Trump’s Cheese Tariffs May Be His Most Normal Trade Policy

If you’re a fan of European cheeses, I’m sorry to report the price outlook is not Gouda.

The U.S. and the European Union have a long-running trade dispute over airplane subsidies. Each side alleges that the other is subsidizing its major commercial-aircraft manufacturer (Boeing and Airbus, respectively) in violation of World Trade Organization rules. The WTO says both sides are right: Boeing and Airbus both receive improper subsidies. Soon, the WTO will say how much in retaliatory tariffs each side may impose to punish the other for these violations. And in preparation for that decision, the U.S. has prepared a list of $25 billion worth of European exports we might subject to 100 percent tariffs.

The list reads like an order sheet from Dean & DeLuca.

Tariffs may be applied to cheeses including Gouda, Stilton, Roquefort, and Parmigiano-Regianno. Olive oil. Olives. Dried cherries. Apricot jam, peach jam, currant jelly, pear juice. Ham, including Proscuitto di Parma, Jamón Ibérico, Jambon de Bayonne and any of the other delicious European hams. Wine. Whiskey. Brandy (e.g., Cognac). If you might buy it to throw a fabulous cocktail party, it may soon be subject to a prohibitive tariff.

Meanwhile, the EU has released its own list of goods it might tariff because of our subsidies to Boeing — it includes live lobsters, orange juice, and rum.

Donald Trump, who doesn’t drink, says you shouldn’t worry about wine tariffs because the best wines are American anyway. But while high tariffs that upset coastal snobs would seem to combine two of Trump’s passions, his strategy of threatening these tariffs is actually one of the more ordinary parts of his trade policy. Long before Trump was president, the U.S. and Europe have exchanged punitive tariffs on luxury and specialty goods as tools to push for resolutions to valid trade grievances [ . . . ]

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