Trade Groups Warn Of Job Losses If Imported Wine, Spirits Tariffs Move Forward
August 6, 2019U.S. trade groups including the Distilled Spirits Council, Wine & Spirits Wholesalers of America, The Wine Institute, and others are urging the U.S. Trade Representative (USTR) not to impose tariffs on European Union spirits, wine, and non-alcoholic beer, all of which are included on a preliminary list of products targeted by the U.S. in its dispute with the E.U. over aircraft subsidies.
In joint comment to the USTR, Robert Lighthizer, the trade groups said such tariffs “will lead to negative unintended consequences for U.S. consumers, will cause a further decline in U.S. beverage alcohol exports, and will result in a significant loss of U.S. jobs.” Related job losses in the beverage alcohol and hospitality sectors could top 78,000, according to the trade groups’ analysis. In April, the USTR initially included wine, liqueurs and cordials, and Cognac among a preliminary list of products targeted for tariffs, and it added Scotch and Irish whiskies the following month.
“If beverage alcohol products remain on the final U.S. list, the E.U. would certainly respond by keeping U.S. beverage alcohol products on its own list, thus inflicting more damage on U.S. companies that export to this critically important market,” the trade groups stated. Indeed, the E.U. has already threatened to impose tariffs on imports of U.S. wine, vodka, and rum, following its imposition of a 25% tariff on American whiskey last summer, as part of the ongoing trade battle. Since then, American whiskey exports to the E.U. have declined by 19%.—Daniel Marsteller
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