US considering extending tariffs to whole of Europe, and increasing rates up to 100%
The trade war between the US and the EU looks set to intensity after US trade authorities suggested the possibility of increasing tariffs and including wines from the whole of the EU.
At present the tariffs are restricted to products from France Germany, Spain and the UK.
The Office of the US Trade Representative (USTR) suggested it could increase the number of products subject to tariffs as well as increasing the tariff rates up to 100%.
Possible targets for further tariffs, along with other foodstuffs, include sparkling wine, Tokaj, Marsala, grape wines with more than 14% alcohol, wine in containers of more than 10 litres, grape must capable of being fermented into wine, grape brandy, and "whiskies, other than Irish and Scotch whiskies".
The previous tariffs had only been applied to wines up to 14% alcohol, and excluded Tokaj and any Irish whiskey not produced in the UK (i.e., whiskey produced in the Irish republic, rather than Northern Ireland).
If these proposals become a reality it would come as a bitter blow to European producers, as well as to US retailers who sell their products, many of whom are already struggling to deal with the existing 25% tariffs now liable on some wines, particularly those from France.
The new tariff regime would also extend the additional rates to Italian wines, which were exempt under the October tariffs Some in the industry had suggested ways of getting around the original tariffs, such as bottling the wine in the US, or boosting wines so that they exceeded the 14% limit, but these new measures would kill those ideas.