News Alert: U.S. And E.U. Agree To Suspend Tariffs Related To Aerospace DisputeMarch 5, 2021
Following the news earlier this week of a thaw in trade relations between the U.S. and U.K., the U.S. has come to a similar accord with the E.U. to suspend tariffs related to the aerospace dispute between the two parties.
The agreement suspends for four months the 25% tariffs imposed by the E.U. on U.S. rum, brandy, and vodka in November 2020. In addition, the U.S. is suspending the 25% tariffs imposed on liqueurs and cordials from Germany, Ireland, Italy, and Spain in October 2019, and on certain Cognacs and other grape brandies from France and Germany in January 2021. The deal also suspends U.S. tariffs on French, Spanish, and German wines.
As in the U.K. agreement, however, the accord does not suspend E.U. tariffs on U.S. whiskies instituted after the U.S. levied tariffs on E.U. steel and aluminum in 2018.
“While this is a very positive development, the E.U. and the U.K. continue to impose a 25% tariff on American whiskey, which will double to 50% on June 1,” noted the Distilled Spirits Council of the U.S. (DISCUS). “This excessive burden is unfair and not sustainable.”—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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