Some of the people who might be affected by a US wine tariff, including Felix, Sylvia and Silvio Jermann (Silvio Jermann, Italy), Tristen Beamon (Wine Exchange, USA) Nadia Zenato (Zenato, Italy), Jean-Luc Thunevin (France), Diana Berrouet-Garcia (Château Petit-Village, France).
The U.S. proposal to slap a job-killing 100 percent tariff on all wines from the European Union is still pending. Don’t be lulled into complacency by the “handshake pause” on a separate proposal to tax French sparkling wine at 100 percent. Please keep weighing in with your representatives in Washington!
By February 14, the Office of the U.S. Trade Representative will finish its review of the ongoing U.S. / EU Large Aircraft Dispute. After that, the U.S. administration could decide to move forward with the 100 percent tariff on all European wines.
Last month I wrote to all our friends and subscribers about this, and urged people to contact their members of Congress and USTR to oppose tariffs that I said would be the hardest blow to the wine trade and wine-consumer since Prohibition.
JamesSuckling.com contributed financially to support the work of the National Association of Wine Retailers to oppose the massive new taxes. I submitted testimony to USTR and wrote to U.S. trade Representative Robert Lighthizer.
In an incredible show of solidarity, consumers, importers, distributors, producers, and wine professionals really turned out in force on this one. Tens and tens of thousands of comments were sent to USTR. I’ve seen reports that around 150 members of Congress, spurred on by their constituents, weighed in on the issue.
A huge number of wine professionals and consumers attended USTR’s January 10 hearing live and remotely. Many offered compelling explanations of the major and long-lasting damage the proposed tariffs would inflict by killing American jobs, and eliminating important local, state and federal revenue. Some hammered the point that around 80 percent of the selling price of a bottle of wine is made up of profit and taxes that remain in the U.S.
All in all, we have seen a huge, grass roots appeal for fairness and common sense, from countless people all across America. It made me proud.
The trade disputes between the U.S. and Europe are important, for both sides. As I’ve said before, they represent big economic equities in the two giant sectors involved—aviation and digital services. Our governments need to work this out. But, it just isn’t fair to devastate—and that’s what it would do—a smaller and unrelated sector, and all the people it employs, in the mistaken hope it gives a little leverage.
I hope you see it that way too. And I hope you will contact your members of Congress now to urge them to keep weighing in with USTR and the administration to do the right thing—and leave wine out of the trade wars.
It only takes a minute if you use this link.
Thank you.
– James Suckling, CEO & editor
