Wine Trade Alliance Advises Halting Of E.U. Shipments Pending April Tariffs

The U.S. Wine Trade Alliance (USWTA), a coalition of industry players from all three tiers advocating against tariffs, is “strongly advising” its members to temporarily halt shipments from the European Union, as it believes the risk of heavy tariffs on E.U. wines and spirits beginning April 1 is too great to ignore.

Last week, President Trump threatened to levy a 200% tariff on “all wines, Champagnes, and alcoholic products coming out of France and other E.U. represented countries.” The threat is in response to European Union plans to reinstate tariffs on U.S. whiskies on April 1 at a rate of 50%, in retaliation for U.S. levies on steel and aluminum.

“The disruption this would cause is not lost on us, and we do not take this recommendation lightly,” said USWTA president Ben Aneff, who is managing partner of Tribeca Wine Merchants in New York City. “To be clear, no federal register notice on this issue has yet been published, and it is possible either the U.S. or E.U. could pivot away from the current tit-for-tat, but at this moment there is a risk that goods could be tariffed if they arrive in the U.S. after the beginning of April.

“We are working diligently to ensure any tariff enactment would have a goods-on-the-water exception,” Aneff added, “but the flat reality is right now there is no guarantee of an exception for goods in transit at the time of a tariff enactment.”

There remain hopes that, as in the case of Trump’s proposed tariffs on Mexico and Canada—which have already been postponed twice—there may be a negotiated reprieve for wine and spirits imports from the E.U. But time is ticking down to the deadline, and the USWTA now believes it’s best to pause shipments to ensure importers aren’t taxed with a devastating 200% charge when their goods arrive stateside.

“This is not a fight that we are responsible for, but it is a fight we are in nonetheless,” said Aneff. “We are speaking with agency staff and members of Congress every day.”
—Daniel Marsteller

Tagged : Tariffs, U.S. Wine Trade Alliance, USWTA

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