This is a troubling email to have to write but it’s one we feel compelled to send. As of today, the current administration is contemplating raising tariffs in the coming weeks to 100% on all imported European wine, in addition to a whole host of European food products and spirits. This is in retaliation to EU subsidies to their aircraft industries, and separate from the 25% tariff that has already been applied to wines under 14% alcohol from France, Spain, the UK and Germany since October. It’s obviously alarming for us as a wine shop that specializes in European wines, but it should also be alarming to you if you ever drink these wines or dine out at restaurants that serve them, period. If enacted, the tariffs have devastating potential, threatening the livelihood of producers, importers, retailers, restaurants and countless others all along the supply chain and across the food & beverage business. And this is without even mentioning the strain this would put on your wallet as a consumer.

It’s unclear at this point exactly how these tariffs would be shared across the spectrum from producer to consumer, but they would undoubtedly result in a significant increase in the price of each and every European wine and a decrease in the diverse selection of these wines that we have been enjoying for generations in our country. We would likely see the end of many wines being imported into the US at all. 

We all need to pitch in to keep these tariffs from being enacted. There are a few ways you can make your voice count before Monday, January 6th:

WRITE THE U.S. TRADE REPRESENTATIVE

Below in italics is wording for a letter that you can use to write to the U.S. Trade Representative at the website they have created to take input on proposed tariffs. Copy the italicized wording, then click on the link at the end of the letter, then paste the wording into the box provided for writing commentary. Remember to put your name and address in the area reserved for them.

The Honorable Robert Lighthizer
U.S. Trade Representative
Executive Office of the President
600 17th Street, NW
Washington, DC 20006

                        Re: Opposition to Tariffs on Imported Wine from the European Union

Dear Amb. Lighthizer:

I am writing as a customer and consumer of imported and domestic wines that is concerned with the multiple rounds of tariffs that are being imposed and considered on wine from the European Union (“EU”).  I strongly urge you not to punish me, or my fellow wine lovers, or the hardworking wine retailers for problems we didn’t cause. It’s unfair at face value. You should punish those responsible. Punishing Airbus and their suppliers and French digital services companies would be much more effective, as well as fair.

Beginning on October 18, 2019, the U.S. Government imposed a 25-percent tariff on certain French wine as part of retaliatory tariffs against the European Union (“EU”) after the World Trade Organization authorized retaliation for the EU’s failure to comply with WTO rulings on subsidies provided to Airbus. All the while Airbus itself was only issued a 10% tariff. I understand that a 100-percent tariff is proposed on French sparkling wine (consisting mostly of champagne) and that this tariff is part of the Section 301 duties imposed on imports from France as a result of the country’s Digital Services Tax (“DST”). Finally, on December 10, 2019, USTR proposed imposing tariffs of up to 100 percent on all wines from the EU.

Because of these import tariffs, the prices will go up dramatically for wine. Margins on wine are extremely small, and the sale of wine is highly regulated, with virtually every state imposing a three-tier distribution system with markups occurring at each tier of distribution.  Thus, a 25-percent tariff on wine imports will likely result in a 50-percent increase and a 100-percent tariff on wine imports will likely result in a 150-percent increase in prices for a consumer like me.

There is no substitute for imports of wine from the EU. Wines from the EU are different from domestic wines and wines from other countries as a matter of consumer taste.  In addition, because it takes many years to plant new grape vineyards and allow the vineyards to produce mature fruit that can be harvested to make wine, it will take at least a decade before the U.S. domestic wine industry could ever be in a position to begin replacing wine imports from the EU.

As a wine consumer, I do not understand why individual consumers like me should suffer because of a dispute involving Boeing and Airbus or France’s digital services tax.  Retaliatory tariffs on these matters should target Airbus and their suppliers who benefited from the subsidies or French digital services companies.

Click To Email the U.S. Trade Representative

Additionally, below are links that will allow you to email your U.S. House Representative and to contact your U.S. Senator. Each link takes to you to a page where you need only 30 seconds to send a letter to your representatives.

WRITE YOUR CONGRESS

Click to Email Your U.S. House Representative

Click to Email Your U.S. Senator

This is something with serious ramifications for anyone who enjoys European wine, and for those of us who make a living championing it. We hope you’ll help us in raising awareness and hopefully putting these tariffs to bed before they come into effect.

Thank you so much for your help!

Cheers,