Imagine visiting your favorite wine merchant for a modest bottle of French or Italian wine only to see virtually empty shelves and a smattering of prohibitively expensive wines. It might seem farfetched but that is exactly what will likely happen if the Office of the U.S. Trade Representative (“USTR”) implements proposed 100% import tariffs on European wines and other agricultural products.
The crisis arose earlier this year after the World Trade Organization appeals court upheld a finding that European nations improperly subsidize production of Airbus SE commercial planes. The Office of the U.S. Trade Representative promptly responded by proposing tariffs up to 100% of the value of European Union cheeses, meats, olive oil, yogurt, whiskey, brandy and wines imported to the United States. The USTR will accept public comments on the proposal until January 13, 2020, so TIME IS OF THE ESSENCE to register opposition!
Take a moment now and go to the pertinent government regulations and comment link at regulations.gov/document? D=USTR-2019-0003-2518. Click on “Comment Now” to tell the USTR that you vehemently oppose placing 100% tariffs on imported European wines, cheeses and other food products. This trade dispute involves commercial aircraft, not consumer products. Retaliatory tariffs should be placed on imported European aircraft.
Remind the USTR that the proposed wine tariffs would harm and unfairly penalize numerous innocent small businesses, especially hardworking importers, distributors, retailers and restaurants specializing in European products. Importers simply cannot afford to pay 100% tariffs upfront to clear goods through customs, so European wine orders will be canceled.
Consequently, inventories will not be replenished, and, without inventory to offer at competitive prices, small to medium- size firms in the distribution chain of European wines could be rapidly forced out of business. Thousands of jobs would be eliminated. See importer Jenny Lefcourt’s outstanding opinion piece in the New York Times on the insanity of the tariffs.
Those outside the wine business also will feel the impact. Without reasonably priced imported bottles, American consumers lose access to delicious European wines with traditions stretching back literally thousands of years. That would be a monumental cultural and wine drinking fiasco.
In short, imposing onerous 100% tariffs on European wine imports would create an economic and consumer disaster with consequences felt for decades to come. Don’t let it happen without at least voicing your opposition now!
For more up to date developments on the proposed tariffs, check out the Facebook Group Organizing Wine Tariff Response.