WINE AND SPIRITS TARIFF: European wine and spirits could see retaliation

Last week, President Trump announced plans to retaliate against incoming tariffs imposed by the European Union by levying a tariff on EU origin wine and spirits. Based on the available information, the retaliatory tariff could be as high as 200%.

The EU tariffs are themselves a response to the 25% tariff imposed by the United States on steel and aluminum imports, which went into effect earlier this month. As of this writing, the EU plans to target U.S. origin whisky with a 50% tariff.

The anticipated whiskey tariff prompted the Trump Administration to threaten a 200% tariff on European wine and spirits. President Trump said, via Truth Social: 

The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky. If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.

At this point, it is unclear what the response of the EU will be. While in the past countries facing U.S. tariffs have negotiated deals to prevent the tariffs from going into effect, there is no guarantee that the EU will back down. Be on the lookout for updates as the situation continues to develop.

As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions.  If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.