Is it possible a wine tariff trade settlement is finally possible?
The Trump Administration won’t raise the 25 percent on selected European wines, which is about as much good news as we can hope for these days.
The U.S. Trade Representative’s statement yesterday said it wouldn’t increase the tariffs on French, Spanish, German, and British wine that have less than 14 percent alcohol. The agency had been re-examining the tariffs, as required by law, and had intimated a couple of weeks ago that it would consider upping the 25 percent rate. Instead, it left the tariff unchanged, as it did on some whiskeys, other spirits, and some food like Italian cheese.
European Union officials welcomed the news, saying the decision to refrain from an increase would help prevent a further escalation in the trade war. Both sides said they would try harder to reach a settlement.
The tariffs were enacted last October as part of a decades-old dispute about airplane parts, which keeps getting sillier and sillier as the world battles both a recession and the pandemic. Those of you who aren’t worn out by all of this can check out the tariff’s history here.