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CHAOS ON TARIFFS

Message from the US Wine Trade Alliance: “Stop all wine shipments from the EU”

The online letter specifies, “no action yet, but the risk is too high. We are in a fight which we are not responsible for”
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“Stop all wine shipments from the European Union”, reads the message from the US Wine Trad

“We strongly advise American companies to STOP ALL WINE, SPIRITS AND BEER SHIPMENTS FROM THE EUROPEAN UNION. The risk of current tariffs is too high”. This is what the US Wine Trade Alliance (USWTA) has written, black on white, all in capital letters, as if to shout it out, and which, on its website, explains, “represents all levels of the wine trade in the United States in the fight against tariffs on wine”. In a letter to its members, which was published online, it reiterates that, although there are no official measures yet, the incumbent risk is real and carries with it potentially serious consequences. Wine risks becoming a sacrificial victim in a trade war that it has nothing to do with. “As you know, President Trump has threatened 200% tariffs on all spirits from the European Union, in response to the EU's planned tariffs on US bourbon and other products. The EU announcement means the tariffs would go into effect on April 1. We believe it is possible that the United States could respond immediately with tariffs on April 2, using a section of the trade law that has never been used before”, USWTA explained. And, continued,“ we are working diligently to ensure that any tariff issued contains also an exception for goods on the water, but the stark reality is that, at this time, there is no guarantee of an exception for goods in transit when a tariff is issued. The disruption this would cause is not lost on us, and we do not take this recommendation lightly. To be clear, there has not yet been a Federal Register notice published on this issue, and it is possible that the United States or the European Union could walk away from the current retaliation. At this time, though, there is a risk that goods could be taxed if they arrive in the United States after the beginning of April. This is a fight that we are not responsible for; nonetheless, we are in this fight. We are talking to Agency staff and members of Congress every day and will bring you more information as we have it”.

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