I'm sure there will be more full-fledged coverage soon, but apparently the long-threatened tariffs on European wine and spirits (and cheeses) is indeed going to take effect, though as I write this it's unclear when exactly and whether certain wines might be exempted.
It looks like it says wine other than tokay not carbonated and not over 14% abv in containers not over 2L from France, Germany and Spain are subject to 25%. if this is accurate, then Sherry will still be the world's best value lol
So does that mean everyone will just label the wine as over 14%
Haha, I asked the same thing today!
Like who's going to object?
Here’s an article on the topic. I’m not very knowledgeable, so I can’t say anything about how accurate this is.
It is a complex mix of products. The part seemingly relevant to wine reads:
Wine other than Tokay (not carbonated), not over 14% alcohol, in containers not over 2 liters.
It is supposed to refer specifically to wines from France, Germany, and Spain. The language is coming from the pre-existing “Harmonized Tariff Schedule” code, which explains the bizarre use of “Tokay” in this context.
here is the document
Can anyone argue that this is not a good thing for American producers who are already negatively impacted by a low exchange rate?
Historical exchange rate:
Good for American producers does not equal good for American consumers.Im more concerned about the later
Yup, boom times for Grenache wines in Spain as well.
Same here. I am not sure that the low exchange rate has that much of a negative impact on US producers. It is about price on the shelf or list. US wines tend to have a higher overall retail price due to taxes, production costs, labor costs, land costs, etc.
While consumers and our cellars and bank accounts will definitely feel the effects of the tariff - I think we will see the biggest impact on smaller importers.
I agree that the largest negative extranalities would be on both smaller importers and smaller boutique wine stores. Although, I don’t foresee the tariffs being more than a negotiation tactic.
So how are those new tariffs working for ya? I’m already getting warnings and confusion pertaining to my DI’s. We truly do work in an internationally impacting industry! Gotta love it!