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May 30, 2022 View:

US tariffs on EU wines German wineries begin to shift market focus

Recently, the protracted Boeing-Airbus subsidy dispute between the United States and the European Union continued to escalate.

Image from: CCTV News

Wine and other alcoholic products have been affected as the U.S. has again expanded the scope of tariffs imposed on some EU products. As one of the important production areas of European wine, German practitioners expressed their dissatisfaction and began to gradually shift their market focus.

According to a statement issued by the Office of the U.S. Trade Representative on December 30, 2020, in terms of tariffs on alcohol, starting on the 12th, the U.S. will impose a 25% tariff on wines originating from France and Germany with an alcoholic content higher than 14%. This is the first time the U.S. imposes tariffs on EU wines with an alcoholic content higher than 14%. The U.S. side said the move is aimed at punishing the EU"s long-term subsidies to France's Airbus.

In light of the Trump administration's surprise announcement two weeks ago, EU-related industry players called the tariffs an unexpected move and warned that the increase would further depress the brewing industry, which has been affected by the outbreak.

In response to the tax increase, German wineries have also made great adjustments to the U.S. market, with some brands simply withdrawing from the U.S. market and others changing the way they work with U.S. distributors. And in the face of lost market share, German wineries hope to make up for it by expanding other markets, especially expanding into Asia.

German wine producer Piet: I think the US measures to further increase tariffs on wine are very arbitrary. Does wine have anything to do with airplanes? I will continue to gradually reduce the U.S. market and deepen my cooperation with Scandinavia and Asia, especially China. I have achieved some results in the last 12 months and I hope to continue to expand this.