US Trade Office Adds 25% Tariff to cognac and non-sparkling wines from France and Germany

The US Trade Office announced today an unexpected last hour modification to tariffs and products subject to tariffs in part of the ongoing civil aircraft dispute.  This comes before the next scheduled tariff carousel review in February 2021 and dampens current negotiations between US and EU.     

The announcement today is a response to the European Union imposing retaliatory tariffs on American products in September.  These retaliatory tariffs covered a larger scope of products as the trade data period included the most recent period affected by COVID.  To keep the trade actions proportionate, the US is expanding the current product list.  Read the full press release from the USTR and the link to the Federal Register notice here 

Effective January 12, 2021 wines from France and Germany (effervescent wines, Tokay wine, Marsala, wines of fresh grapes other than sparkling wine, grape must, nesoi, and distilled spirits from grape) will be subject to 25% tariffs.

View products listed on Federal Register Notice here

We will continue to monitor and update you on developments.  More backstory can be found in this article from Bloomberg