US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

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D@vid Bu3ker
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Re: US to impose 25% tariff on European wine, cheese, etc.

#651 Post by D@vid Bu3ker » December 5th, 2019, 3:34 pm

Reality hits hard.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#652 Post by D@ve D y r 0 f f » December 5th, 2019, 3:40 pm

With regard to raising Bdx prices across the board, isn't that ignoring the 14% line? Some quick Googling seems to indicate that top 2016s are a mix of under, at, and over 14%. When I spoke to the manager at my LWS, he expressed much more distress at what he's going to have to pay for 2018 Burgs than what he's going to have to pay for 2018 Bdx, figuring that there will be plenty of the latter that are not subject to the tariff.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#653 Post by Thomas De Waen » December 6th, 2019, 12:48 am

John Morris wrote:
December 4th, 2019, 9:50 am
We went through this all many pages back.

Yes, if everyone insists on maintaining their current profit margins (in percentage terms), the retail price would double. But that is a big If and very unlikely.

If sales fell by more than 50% after prices double, the middlemen would end up making less money than they do at current prices and sales volumes. So the natural response is to lower percentage margins to reduce the falloff in volume. And, to the extent that the businesses have fixed costs (rent, salaries), they don't need to maintain their percentage margin; they just need to take in the same number of dollars.
People will most likely keep their margin % stable. May be not immediately, but over time. The "$" margin argument applies equally to restaurant mark-ups (why not have it be more or less fixed in $ regardless of price of bottle poured?), margin differentials between cheap and expensive wines (why not apply same margin $ to 2-buck chuck and Dom? Not much more work to sell the Dom), etc... ultimately everyone in that value chain looks at operating margin %.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#654 Post by M A T T H A R T L E Y » December 6th, 2019, 3:33 am

Thomas De Waen wrote:
December 6th, 2019, 12:48 am
John Morris wrote:
December 4th, 2019, 9:50 am
We went through this all many pages back.

Yes, if everyone insists on maintaining their current profit margins (in percentage terms), the retail price would double. But that is a big If and very unlikely.

If sales fell by more than 50% after prices double, the middlemen would end up making less money than they do at current prices and sales volumes. So the natural response is to lower percentage margins to reduce the falloff in volume. And, to the extent that the businesses have fixed costs (rent, salaries), they don't need to maintain their percentage margin; they just need to take in the same number of dollars.
People will most likely keep their margin % stable. May be not immediately, but over time. The "$" margin argument applies equally to restaurant mark-ups (why not have it be more or less fixed in $ regardless of price of bottle poured?), margin differentials between cheap and expensive wines (why not apply same margin $ to 2-buck chuck and Dom? Not much more work to sell the Dom), etc... ultimately everyone in that value chain looks at operating margin %.
This is spot on.

Distributors and importers especially are VERY protective of their margin % - I've found most actually don't even focus on margin dollars (as silly as that sounds).
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Re: US to impose 25% tariff on European wine, cheese, etc.

#655 Post by D@vid Bu3ker » December 6th, 2019, 5:39 am

M A T T H A R T L E Y wrote:
December 6th, 2019, 3:33 am
Thomas De Waen wrote:
December 6th, 2019, 12:48 am
John Morris wrote:
December 4th, 2019, 9:50 am
We went through this all many pages back.

Yes, if everyone insists on maintaining their current profit margins (in percentage terms), the retail price would double. But that is a big If and very unlikely.

If sales fell by more than 50% after prices double, the middlemen would end up making less money than they do at current prices and sales volumes. So the natural response is to lower percentage margins to reduce the falloff in volume. And, to the extent that the businesses have fixed costs (rent, salaries), they don't need to maintain their percentage margin; they just need to take in the same number of dollars.
People will most likely keep their margin % stable. May be not immediately, but over time. The "$" margin argument applies equally to restaurant mark-ups (why not have it be more or less fixed in $ regardless of price of bottle poured?), margin differentials between cheap and expensive wines (why not apply same margin $ to 2-buck chuck and Dom? Not much more work to sell the Dom), etc... ultimately everyone in that value chain looks at operating margin %.
This is spot on.

Distributors and importers especially are VERY protective of their margin % - I've found most actually don't even focus on margin dollars (as silly as that sounds).
Exactly true. Especially so, since making variable determinations on margin dollars product by product would be a colossal pain in the ass. People are just going to do markup percentages.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#656 Post by RichardFlack » December 6th, 2019, 7:01 am

There is little doubt that whatever underlying theory might suggest for the price change, consumers will dictate what can be charged in practice. That will lead to discounts (off that target price) on certain products and reduced margins (profit impact will depend on what happens to sales but it’s hard to see profit going up), or, in the alternative, margins maintained and reduced sales and hence reduced profits.

Consumer price elasticity probably varies by product, probably greater on Krug than on Veuve Cliquot yellow label. What is so frustrating is the impact on parties not responsible for the problem (US consumers and distributors etc).

And this will do nothing to fix the underlying problem of tech giants like Google Amazon etc not paying their fair share of taxes in all jurisdictions where they operate.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#657 Post by Nola Palomar » December 6th, 2019, 7:02 am

I don't know if this has already been posted here or not, but these tariffs are going to be here for a long time as no resolution has been reached. The WTO has concluded for the 6th time that US has won their dispute against the EU and Airbus subsidies, Tariffs Remain in place.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#658 Post by D@vid Bu3ker » December 6th, 2019, 8:50 am

The 2020 WTO decision on Boeing subsidies will potentially force a compromise. Have to see how that WTO decision comes down.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#659 Post by Brian G r a f s t r o m » December 6th, 2019, 9:01 am

Right about now I am very happy we have a good stockpile wine. For as long as the tariffs remain in place (assuming it's not many years) I anticipate a net reduction in our holdings, which would be the dawn of a new era for our household.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#660 Post by Markus S » December 6th, 2019, 10:53 am

RichardFlack wrote:
December 6th, 2019, 7:01 am
There is little doubt that whatever underlying theory might suggest for the price change, consumers will dictate what can be charged in practice. That will lead to discounts (off that target price) on certain products and reduced margins (profit impact will depend on what happens to sales but it’s hard to see profit going up), or, in the alternative, margins maintained and reduced sales and hence reduced profits.
I see consumer choice becoming more limited, as thresholds of pain will be hit for certain wines that can no longer sell for a higher price with the result that these will not be imported any further. [titanic.gif]
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Re: US to impose 25% tariff on European wine, cheese, etc.

#661 Post by RichardFlack » December 6th, 2019, 11:19 am

Nola Palomar wrote:
December 6th, 2019, 7:02 am
I don't know if this has already been posted here or not, but these tariffs are going to be here for a long time as no resolution has been reached. The WTO has concluded for the 6th time that US has won their dispute against the EU and Airbus subsidies, Tariffs Remain in place.
.
https://ustr.gov/about-us/policy-office ... sixth-time
I thought the latest tariff hit was about the EU taxes on tech / internet companies that pay no or very low taxes, not the Airbus / Boeing scrap. (In regard to the latter, yes there will be the other shoe to drop when EU brings in their tariffs in regard to Boeing's subsidies, but I think that I read that the "harm" to Airbus was less than that to Boeing and thus a much smaller shoe).
Given the lack of progress on sorting out the tax issues on multinational tech / internet companies, it is still true that these tariffs may be here for a while. It will be interesting to see what the EU response is as I cannot see them giving up on having Google etc pay a fair level of tax.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#662 Post by D@vid Bu3ker » December 6th, 2019, 11:21 am

RichardFlack wrote:
December 6th, 2019, 11:19 am
Nola Palomar wrote:
December 6th, 2019, 7:02 am
I don't know if this has already been posted here or not, but these tariffs are going to be here for a long time as no resolution has been reached. The WTO has concluded for the 6th time that US has won their dispute against the EU and Airbus subsidies, Tariffs Remain in place.
.
https://ustr.gov/about-us/policy-office ... sixth-time
I thought the latest tariff hit was about the EU taxes on tech / internet companies that pay no or very low taxes, not the Airbus / Boeing scrap. (In regard to the latter, yes there will be the other shoe to drop when EU brings in their tariffs in regard to Boeing's subsidies, but I think that I read that the "harm" to Airbus was less than that to Boeing and thus a much smaller shoe).
Given the lack of progress on sorting out the tax issues on multinational tech / internet companies, it is still true that these tariffs may be here for a while. It will be interesting to see what the EU response is as I cannot see them giving up on having Google etc pay a fair level of tax.
The latest tariff is about the tech taxes, but Nola was just more on top of the news that I have been. The WTO examined some "remedies" by the European governments, and found them wanting, so the decision to allow the $7.5B in tariff targets (which caused the 25% tariff on 14% and lower still wines) remains in place for the foreseeable future.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#663 Post by D@vid Bu3ker » December 6th, 2019, 12:08 pm

FYI - we can comment on the proposed tariffs. There are instructions in the Federal Register Notice. I have excerpted the pertinent info here:

All submissions must be in English and sent electronically via www.regulations.gov. To submit comments, enter docket number USTR–2019–0009 on the home page and click ‘‘search.’’

The site will provide a search results page listing all documents associated with this docket. Find a reference to this Notice and click on the link entitled ‘comment now! For further information on using the www.regulations.gov website, please consult the resources provided on the website by clicking on ‘‘’how to use regulations.gov’ on the bottom of the home page. USTR will not accept hand-delivered submissions.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#664 Post by Tom G l a s g o w » December 6th, 2019, 6:46 pm

Brian G r a f s t r o m wrote:
December 6th, 2019, 9:01 am
Right about now I am very happy we have a good stockpile wine. For as long as the tariffs remain in place (assuming it's not many years) I anticipate a net reduction in our holdings, which would be the dawn of a new era for our household.
And just think, if there’s a famine I’ll finally loose that weight I should. (Sarcasm, I hope). Dig your point about inventory reduction.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#665 Post by Tom G l a s g o w » December 6th, 2019, 6:49 pm

D@vid Bu3ker wrote:
December 6th, 2019, 11:21 am
RichardFlack wrote:
December 6th, 2019, 11:19 am
Nola Palomar wrote:
December 6th, 2019, 7:02 am
I don't know if this has already been posted here or not, but these tariffs are going to be here for a long time as no resolution has been reached. The WTO has concluded for the 6th time that US has won their dispute against the EU and Airbus subsidies, Tariffs Remain in place.
.
https://ustr.gov/about-us/policy-office ... sixth-time
I thought the latest tariff hit was about the EU taxes on tech / internet companies that pay no or very low taxes, not the Airbus / Boeing scrap. (In regard to the latter, yes there will be the other shoe to drop when EU brings in their tariffs in regard to Boeing's subsidies, but I think that I read that the "harm" to Airbus was less than that to Boeing and thus a much smaller shoe).
Given the lack of progress on sorting out the tax issues on multinational tech / internet companies, it is still true that these tariffs may be here for a while. It will be interesting to see what the EU response is as I cannot see them giving up on having Google etc pay a fair level of tax.
The latest tariff is about the tech taxes, but Nola was just more on top of the news that I have been. The WTO examined some "remedies" by the European governments, and found them wanting, so the decision to allow the $7.5B in tariff targets (which caused the 25% tariff on 14% and lower still wines) remains in place for the foreseeable future.
When do they evaluate that airbus planes don’t just fall out of the sky like those jury rigged Boeing jobs?

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Re: US to impose 25% tariff on European wine, cheese, etc.

#666 Post by D@vid Bu3ker » December 6th, 2019, 6:53 pm

That’s for the buyers to decide.
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#667 Post by Dan Kravitz » December 6th, 2019, 7:43 pm

D@vid Bu3ker wrote:
December 6th, 2019, 6:53 pm
That’s for the buyers to decide.
+1

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Re: US to impose 25% tariff on European wine, cheese, etc.

#668 Post by JonathanG » December 6th, 2019, 9:18 pm

The US is blocking appointments to the WTO. And it sounds like if they continue to do so, the WTO will be unable to issue rulings past the end of this year. Which would be interesting if they are unable to rule on the Boeing case. Perhaps the Airbus ruling stands, forever? And no ruling on Boeing? So the 25% tariffs stay longer than expected?

And with the Digital Service Tax here to stay, and the UK likely to pass one also, these 100% tariffs may have a longer life than we all hope. Likely will stay till at least the election...
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Re: US to impose 25% tariff on European wine, cheese, etc.

#669 Post by D@vid Bu3ker » December 7th, 2019, 5:25 am

The EU is trying to implement a workaround. U.S. intransigence on global trade is a real problem, potentially larger than BREXIT.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#670 Post by AndrewH » December 7th, 2019, 5:41 am

D@vid Bu3ker wrote:
December 6th, 2019, 8:50 am
The 2020 WTO decision on Boeing subsidies will potentially force a compromise. Have to see how that WTO decision comes down.
Possibly, although also throw the digital tax retaliatory 301 tariffs and the threatened EU counter-tariffs into the mix.

But with a self-proclaimed “tariff man” in office it’s not clear to me mutual disarmament will be the result. Just look at the China situation where both sides continue to hurt each other.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#671 Post by D@vid Bu3ker » December 7th, 2019, 5:43 am

I should have bolded potentially. Given that the WTO will not be able to officially resolve disputes after 12/31/19, the Boeing decision is now unlikely to come down. The Boeing case is one of the primary drivers of the U.S. blocking WTO judges.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#672 Post by JonathanG » December 7th, 2019, 9:03 am

AndrewH wrote:
December 7th, 2019, 5:41 am
D@vid Bu3ker wrote:
December 6th, 2019, 8:50 am
The 2020 WTO decision on Boeing subsidies will potentially force a compromise. Have to see how that WTO decision comes down.
Possibly, although also throw the digital tax retaliatory 301 tariffs and the threatened EU counter-tariffs into the mix.

But with a self-proclaimed “tariff man” in office it’s not clear to me mutual disarmament will be the result. Just look at the China situation where both sides continue to hurt each other.
The DST is in my opinion 100% the equivalent of a tariff, and the administration was right to retaliate on that. I also think that the administration is right to take on China, especially with respect to the forced IP transfers. I don't know all the ins and outs of what specifically the other issues are with China, but that one definitely is worth fighting for.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#673 Post by D@vid Bu3ker » December 7th, 2019, 9:12 am

Let’s not get into the political calculus of this any further.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#674 Post by Markus S » December 7th, 2019, 9:52 am

D@vid Bu3ker wrote:
December 7th, 2019, 9:12 am
Let’s not get into the political calculus of this any further.
Oh heaven forbid.
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#675 Post by D@vid Bu3ker » December 7th, 2019, 10:40 am

Just trying to play by the board rules.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#676 Post by M A T T H A R T L E Y » December 7th, 2019, 11:13 am

JonathanG wrote:
December 7th, 2019, 9:03 am
AndrewH wrote:
December 7th, 2019, 5:41 am
D@vid Bu3ker wrote:
December 6th, 2019, 8:50 am
The 2020 WTO decision on Boeing subsidies will potentially force a compromise. Have to see how that WTO decision comes down.
Possibly, although also throw the digital tax retaliatory 301 tariffs and the threatened EU counter-tariffs into the mix.

But with a self-proclaimed “tariff man” in office it’s not clear to me mutual disarmament will be the result. Just look at the China situation where both sides continue to hurt each other.
The DST is in my opinion 100% the equivalent of a tariff, and the administration was right to retaliate on that. I also think that the administration is right to take on China, especially with respect to the forced IP transfers. I don't know all the ins and outs of what specifically the other issues are with China, but that one definitely is worth fighting for.
It may make more sense to penalize illegal aircraft subsidies by placing tariffs on, you know, things involved in the aircraft trade (like parts etc.) instead of things like wine less than 14% alcohol...but I'm sure these guys know what they are doing... [head-bang.gif]
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Re: US to impose 25% tariff on European wine, cheese, etc.

#677 Post by D@vid Bu3ker » December 7th, 2019, 12:01 pm

OK, yes it makes sense, but that good old US airplane manufacturer uses a ton of parts that come from Europe. Boeing, along with numerous other US-based aerospace companies successfully argued that punitive tariffs on aircraft parts and accessories would cause irreparable damage to the very industry the tariffs are supposed to protect.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#678 Post by PeterH » December 7th, 2019, 1:39 pm

Seems like a more direct approach would be to place a tax on Airbus planes sold to US carriers, but I'm sure there something preventing that.
Penalizing US consumers to make Boeing more competitive is wrong headed to me.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#679 Post by D@vid Bu3ker » December 7th, 2019, 1:42 pm

PeterH wrote:
December 7th, 2019, 1:39 pm
Seems like a more direct approach would be to place a tax on Airbus planes sold to US carriers, but I'm sure there something preventing that.
Penalizing US consumers to make Boeing more competitive is wrong headed to me.
You cannot specifically tax an individual producer (the French digital services tax is on a service, not a specific company), and most of the Airbus planes sold to US carriers are made in Alabama.

We went over this several pages ago.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#680 Post by PeterH » December 7th, 2019, 1:56 pm

"You cannot specifically tax an individual producer".

I figured that was the case, but it doesn't make the tariffs on wine and cheese any less absurd. It's a remedy that would fit perfectly in a Monty Python skit.
A 100% tariff on Champagne is like stabbing ourselves to punish our foe.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#681 Post by D@vid Bu3ker » December 7th, 2019, 2:00 pm

How so?

Don’t get me wrong, as I hate the idea as much as everyone, but Champagne is a luxury good. It’s the classic type of product to receive tariffs.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#682 Post by PeterH » December 7th, 2019, 2:12 pm

How so? There is no direct connection that will help dissuade the French from imposing a digital services tax. European consumers will probably love lower Champagne prices, and the Chinese may develop a taste.
Luxury taxes should have at least one of two bases: To raise revenue from those who can afford it, or to protect a vulnerable domestic producer temporarily.

One thing ironic about a tariff on Champagne is that it would be a windfall for three blue states that generally loathe Trump.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#683 Post by Kelly Walker » December 7th, 2019, 2:37 pm

Tariffs are imposed to either:
Level the playing field
OR
Penalize (inflict pain) on a country for perceived unfair trading practices. The discussed tariff is the latter. Not judging the choices, but the selected tariffs must have been deemed as strategic. Let’s see how this plays out.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#684 Post by Robert Panzer » December 7th, 2019, 2:45 pm

I think that the source of both Champagne's initial "pass" on tariffs, and now its possible steep tariff is plainly obvious : first favor to, and then punishing incentive to motivate Bernard Arnault, owner of LVMH, the third richest person on planet Earth.
He first got a pass on the tariffs thanks to his influence and investing in the US.
Now, he is clearly being pressured to apply his influence on French officials to perhaps revoke the 3% tax on Google/Facebook etc.
100% tariff on handbags and Champagne, the two largest sources of Arnault's revenue?
Seems a no brainer to connect the dots.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#685 Post by D@vid Bu3ker » December 7th, 2019, 2:49 pm

That’s a reasonable possibility Robert. I also have little doubt that the US looks at the propensity for the French to act out when they don’t like something (e.g. falling Champagne sales), and imposes tariffs to strike the match so to speak.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#686 Post by D@ve D y r 0 f f » December 10th, 2019, 5:11 pm

USTR talking about making everything even worse??!!

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https://www.wine-searcher.com/m/2019/12 ... l-eu-wines

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Re: US to impose 25% tariff on European wine, cheese, etc.

#687 Post by D@vid Bu3ker » December 10th, 2019, 5:15 pm

They are trying to put pressure on Macron.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#688 Post by Ron Erickson » December 10th, 2019, 5:35 pm

I'm guessing there are conversations going on with China, emphasizing French wine imports over US wine imports. No one is going to win.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#689 Post by Dan Kravitz » December 10th, 2019, 6:39 pm

"No one is going to win" is the default for trade wars.

Remember Smoot-Hawley!

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Re: US to impose 25% tariff on European wine, cheese, etc.

#690 Post by Victor Hong » December 10th, 2019, 7:20 pm

Great chance to enjoy Virginia wines, which are just the best, and a bargain at any price. Everybody will say so.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#691 Post by Thomas De Waen » December 10th, 2019, 11:29 pm

D@vid Bu3ker wrote:
December 10th, 2019, 5:15 pm
They are trying to put pressure on Macron.
That would be misguided. No self-respecting European leader will want to be seen to yield to bullying. The view from the man in the street in France is that the Digital service tax is meant to address a genuine fairness issue. It’s also notable that the OECD, of which the US is a member, is working on a similar tax for its members and that France has said that any difference between that tax and the current French one would be retroactively refunded to companies.

Seems to me that the whole purpose of this isn’t to pressure the Europeans as much as set the tone in domestic politics.
Last edited by Thomas De Waen on December 11th, 2019, 5:51 am, edited 1 time in total.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#692 Post by Tom G l a s g o w » December 11th, 2019, 5:20 am

Thomas De Waen wrote:
December 10th, 2019, 11:29 pm
D@vid Bu3ker wrote:
December 10th, 2019, 5:15 pm
They are trying to put pressure on Macron.
That would be misguided. No self-respecting European leader will want to be seen to yield to bullying. The view from the man in the street in France is that the tax is meant to address a genuine fairness issue. It’s also notable that the OECD, of which the US is a member, is working on a similar tax for its members and that France has said that any difference between that tax and the current French one would be retroactively refunded to companies.

Seems to me that the whole purpose of this isn’t to pressure the Europeans as much as set the tone in domestic politics.
You’re not clear about which tax French persons view as fair. Presumably, the “google” tax.

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Re: US to impose 25% tariff on European wine, cheese, etc.

#693 Post by D@vid Bu3ker » December 11th, 2019, 6:21 am

When French wine exports to the USA start to plummet next year there will be plenty of pressure on Macron.

I agree that he will not want to bend to the pressure, but the pressure will be there.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#694 Post by Nola Palomar » December 11th, 2019, 6:59 pm

Well folks, you're likely to be seeing the beginning of the end of Veleta. I am trying to figure it out, but there is no way that I can import my own Olive oil and pay a 100% VAT. I am having a really hard time processing so tread lightly.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#695 Post by Victor Hong » December 11th, 2019, 7:36 pm

Nola Palomar wrote:
December 11th, 2019, 6:59 pm
Well folks, you're likely to be seeing the beginning of the end of Veleta. I am trying to figure it out, but there is no way that I can import my own Olive oil and pay a 100% VAT. I am having a really hard time processing so tread lightly.
We know where you can put one bottle of that olive oil, in the US. (Well, maybe two.) I would happily pay that tariff.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#696 Post by AndrewH » December 11th, 2019, 8:43 pm

D@vid Bu3ker wrote:
December 11th, 2019, 6:21 am
When French wine exports to the USA start to plummet next year there will be plenty of pressure on Macron.

I agree that he will not want to bend to the pressure, but the pressure will be there.
Well, it will be broader than that because it's having to get rid of the Airbus subsidies, and pressure will be coming from Spain and Germany too (not sure how it will play with Britain if there's Brexit).

The proposed digital tax is a bit different - I'm sure the Champagne producers won't like it, but that whole thing has an easier exit ramp given OECD is working on a "global" approach that has the potential to satisfy France (or at least let them claim victory and satisfaction) while eliminating the premise for those threatened tariffs.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#697 Post by Nola Palomar » December 11th, 2019, 9:37 pm

Here is the latest from one of the Freight companies I work with.

Update on EU Tariffs / USTR Expands Product List in Airbus Subsidies Case



The US Trade Office has scheduled to publish their official notice in the Federal Register tomorrow (12/12/2019), but the first unofficial release was posted today on the expanded product and country list under review for additional tariffs in connection with the civil aircraft dispute with Europe:

https://www.federalregister.gov/documen ... ft-dispute



The existing tariffs from EU that went into effect October 18, 2019 targeted wines under 14% from France, Germany, Spain and the United Kingdom as well as Irish and Scottish whiskeys, liqueurs and cordials from Germany, Ireland, Italy, Spain and the UK at 25%.



In this document, Annex II contains the list of products, originally published in the April 2019 and July 2019 notices for this investigation, under consideration for the imposition of additional ad valorem duties of up to 100 percent.”



The second section of Annex II includes products from 28 EU nations including: sparkling wine, Tokaj, Marsala, grape wines with more than 14% alcohol, wine in containers of more than 10 liters, grape must capable of being fermented into wine, grape brand, and whiskies, other than Irish and Scottish whiskeys.



The new tariff would also extend the additional rates to Italian wines, which were exempt under the October tariffs.



Affected parties have until January 13 to make submissions on the proposals.



Note as per our notice last week, the USTR also has a separate 301 tariff filing for Digital Service Tax targeting French sparkling wines, cheeses and additional products. That tariff is in the public comment period as well.



We urge you to reach out to your elected officials and industry trade associations to give them specific examples of how this will negatively impact your business in the US and your workforce.

· Contact your elective officials: https://www.usa.gov/elected-officials

· Contact industry trade organizations:


American Beverage Licensees - Matthew Evans evans@ablusa.org (301) 656-1494

American Craft Spirits Association - Alexandra Clough alexandra@gatherpr.com (516) 428-7210

American Distilled Spirits Association - Matt Dogal media@americandistilledspirits.org (202)-670-4616

Distilled Spirits Council - Lisa Hawkins lhawkins@DistilledSpirits.org (202) 682-8840

Kentucky Distillers’ Association - Eric Gregory ric@kybourbon.com (502) 875-9351

National Association of Beverage Importers - Robert M. Tobiassen nabipresident@bevimporters.org (202) 393-6224

WineAmerica - Michael Kaiser mkaiser@wineamerica.org (202) 223-5172

Wine & Spirits Wholesalers of America - Michael Bilello michael@wswa.org (202) 243-7506

Wine Institute - Nancy Light communications@wineinstitute.org (415) 512-0151


In light of the current upcoming tariff hikes, preparing to ship inventory in advance or exploring warehousing alternatives should be done as soon as possible. As always for any questions on your shipments or logistics alternatives in this current regulatory environment, please contact our shipping partner Hillebrand for more information.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#698 Post by Josh Grossman » December 11th, 2019, 9:53 pm

Why don't I want to move to Canada?

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Re: US to impose 25% tariff on European wine, cheese, etc.

#699 Post by Victor Hong » December 12th, 2019, 5:32 am

Oddly missing from this initiative: Russian vodka.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#700 Post by Tom G l a s g o w » December 12th, 2019, 6:13 am

Victor Hong wrote:
December 12th, 2019, 5:32 am
Oddly missing from this initiative: Russian vodka.
Airbus, forget?

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