News Alert: USTR Holds E.U. Wine And Spirits Tariffs In Place At Current Rates

The United States Trade Representative has announced that it will not escalate the current tariffs on single malt Scotch, single malt whiskey from Northern Ireland, and liqueurs and cordials from the U.K, Germany, Ireland, Italy, and Spain, or wines from France, Spain, Germany, and the U.K. However, the current 25% tariff on those products will remain in place.

“The USTR is well aware of the impact these tariffs are having on American businesses and is willfully ignoring the compounding impact of the Covid-19 pandemic on our industry,” said WSWA president Michelle Korsmo. “The USTR has failed to provide relief to a once vibrant U.S. industry desperately in need of relief.”

On Tuesday, a bipartisan group of U.S. senators called for the removal of tariffs on wine, spirits, and food from the European Union. According to Reuters, the Senators said the tariffs have caused significant harm to the affected categories, with importers and distributors stuck holding perishable goods indefinitely. The extra costs imposed by the tariffs are putting the pinch on an industry already suffering from widespread shutdowns and other Covid-19-related challenges.

The tariffs were initially enacted last October and have damaged key categories, with single malt Scotch imports falling 25% since the tariff took effect, according to the Scotch Whisky Association. A WSWA study found that the tariffs could result in 93,000 job losses, $3.8 billion in lost wages, and ultimately an $11 billion hit to the U.S. economy this year.

DISCUS reports that imports of liqueurs and cordials from the countries impacted by the tariff have dropped by 23% or roughly $288 million from October 2019 to May 2020 compared to the same period in 2018-2019. In a statement, the council said that if the tariffs remain in effect there is a good chance that they will expand to other categories or escalate further, causing even more harm to the industry.

—Shane English

Tagged : Tariffs

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