Update on Wine Tariffs

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Yesterday we were all happy to hear that Emmanuel Macron and Trump came to some kind of accord that will prevent the threatened 100% tariffs on French Sparkling wine. But we are far from finished. The Airbus/Boeing dispute is still ongoing, and Trump’s administration has threatened 100% tariffs on all European wine, which would be infinitely more devastating to our business, not to mention the wine business as a whole, and really the entire economy of the United States. 

What can we do now to help?

We should continue to contact our congressmen imploring them to contact the USTR. You could also write your local paper. When reaching out, our message is becoming more focused:
• We want to remove wine entirely in the carousel if eligible products to be tariffed.
• EU wine tariffs are ineffective to the targets in Europe as we are replaceable as a trade partner because: 
-Growing markets in Asia provide instant new export markets.
-Brazil is on the verge of a new EU trade agreement that will remove tariffs and give Brazil’s 35 million wine drinkers access to EU wines.
-The vast number of EU grape growers are tiny and unorganized.  They cannot apply political pressure.
-Our imports account for only 15-20% of EU production.
– If we miss an entire crop cycle of wine releases, new international trade partnerships will develop and we will lose access to many products permanently.  This is a short term action with long term consequences.
• These tariffs hurt American business more than Europeans.  
– For every $100 of EU wine sold in the U.S., $85 goes to American businesses.
– Due to the three tier system, a single bottle of wine generates income for 3 American companies.
To review, we want to convince everyone we reach:  Wine should be removed during this carousel because the tariffs are ineffective against the EU, and they hurt American owned businesses more than Europeans.