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SUMMARY
The US Trade Office has published an expanded product list for additional tariffs in connection with the civil aircraft , “Airbus” dispute with Europe.
- Tariff 1, “Airbus Dispute” (target: *all* wine from Europe)
On October 18, 2019 tariffs at 25% went into effect. These tariffs target wines under 14% from France, Germany, Spain and the United Kingdom as well as Irish and Scottish whiskeys, liqueurs and cordials from Germany, Ireland, Italy, Spain and the UK. This is referred to as “Annex I”.
This new document, “Annex II”, contains an expanded list of products under consideration for duties of up to 100 percent.
Annex II includes products from 28 EU nations including nearly all still, sparkling and fortified wines and whiskies, other than Irish and Scottish whiskeys.
The new tariff would also extend the additional rates to wines from Italy, Slovenia, Portugal, Hungary, Croatia and Greece which were exempt under the October tariffs.
- Tariff 2, “French Digital Service Tax” (target: Sparkling wine from France)
An additional tax of 100% on French sparkling wine among other products and resulting from a separate digital service tax issue with France, is also being reviewed and open for comments.
WHO IS AFFECTED
- U.S. Consumers
- U.S. Retailers
- U.S. Distributors
- U.S. Importers
- Producers
TAKE ACTION – Just 3 steps!
We urge you to reach out to your elected officials on how this will negatively businesses in the U.S., and U.S. consumers. Below is a letter, that we encourage you to personalize prior to sending.
STEP 1– DOWNLOAD this letter template, or copy the text below.
I strongly oppose the proposed increase in tariffs on wine and spirits per United States Trade Representative Docket Numbers USTR-2019-0003 and USTR-2019-0009-0038.
These tariffs are disproportionate and misdirected as they will negatively impact businesses in the United States and lessen consumer choice in retaliation to matters relating to civil aviation and digital service taxes.
- These tariffs will not enforce U.S. rights or to obtain the elimination of the EU and France’s inconsistent measures, as these countries will simply divert their products to other markets, therefore these tariffs will not resolve the dispute or achieve a mutually satisfactory solution.
- Maintaining or imposing additional duties on wine(1) and sparkling wine(2) would cause disproportionate economic harm to U.S.importers, restaurants, retailers and consumers.
- These tariffs are detrimental to small and medium sized businesses without sufficient cash flow to cover these colossal tariffs, due at the time the product lands and before these companies are able to collect revenue.
- These tariffs will result in a loss of U.S. jobs in the retail, importing and distribution of wine and spirits.
- Nationwide there are over 2,000 wine and spirits wholesalers employing more than 87,000 people representing $166 billion in sales in 2017. There are 34,000 beer, wine and liquor stores with 167,000 employees and these industry sector jobs are as important as any other U.S. jobs. (Source: https://www.census.gov/data/tables/2017/econ/awts/annual-reports.html)
- Price increases ultimately will have to be passed on to consumers, so U.S. consumers will be paying a penalty intended for the EU.
I ask you not to sacrifice domestic jobs and businesses, nor to penalize U.S. consumers as part of this dispute.
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(1) Docket USTR-2019-003, HTS subheadings: 2204.21.50, 2204.10.00, 2204.22.20, 2204.22.40, 2204.22.60, 2204.22.80, 2204.22.61, 2204.22.81
(2) Docket USTR-2019-0009-0038, HTS subheading 2204.10.00