US tariffs on high-alcohol wine from Germany and France take effect this week

Dive Brief:

  • The White House is placing 25% tariffs on high alcohol wine from France and Germany as part of a long-running trade dispute over aircraft parts, according to a document filed by the Office of the U.S. Trade Representative.
  • Starting in October 2019, wines that were 14% alcohol or less were hit with a 25% tariff. Those above 14% were exempt. Starting Jan. 12, that tariff will be applied to those above 14% as well. Premium cognacs costing $38 or more a litter will also get slapped with the new import duties, the USTR said.
  • The new tariffs, which come in the waning days of the Trump administration, have been widely criticized by organizations including the Distilled Spirits Council and the U.S. Wine Trade Alliance. They urged the incoming Biden administration to act quickly upon taking office. “We need to convince President-elect Biden that tariff relief should be a major priority of his first few weeks in office, and this is no small task,” Ben Aneff, president of the U.S. Wine Trade Alliance, said in a statement.

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Source: Supply Chain Dive