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

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

#401 Post by Robert.A.Jr. » October 14th, 2019, 1:47 pm

Jay Miller wrote:
October 14th, 2019, 1:21 pm
Kudos to Seabrook which put a rush in and delivered my wine last Friday. I was impressed.
Yup. Kudos for truly superlative shipping service.

They got mine in under the wire, and had it nicely packed in styro with an additional thermoliner since it is still warm in Florida. They also routed it through Kentucky over Miami to avoid the South Florida heat. And early morning delivery by my request. The bottles were super pristine and each individually wrapped in cellophane. Even the wood box came wrapped in bubble.

B203FF43-E162-46FB-89AD-20A18F1B9CB2.jpeg

Now that said, this ain’t cheap! Only makes sense for premium wine or things you just cannot get here in the States.

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

#402 Post by NED VALOIS » October 14th, 2019, 1:49 pm

AndrewH wrote:
October 14th, 2019, 11:30 am
Robert.A.Jr. wrote:
October 14th, 2019, 9:52 am
Well, I took care of my business, had my case of Magdelaine from the UK shipped in right before the tariff. Paid an extra 51 pounds for more expedited shipping plus styro and thermo-liner. Showed at 10:30 AM, perfect, cool to the touch. Hated the fire-drill, but glad to have done it this way.
Cue the knock on the door from the Florida Department of Revenue in 3 . . . . 2 . . . . 1
DELETE< DELETE DELETE !!!! [swearing.gif]

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

#403 Post by Joe M » October 14th, 2019, 3:43 pm

William Gladstone wrote:
October 4th, 2019, 12:47 pm
Frank Murray III wrote:
October 3rd, 2019, 11:40 am
Is it accurate that Champagne is not part of the tariff?
"The proposed date of implementation is the 18th of this month, with our best understanding being that many French, Spanish and German wines will be levied with a 25% ad valorem tax.

Notably excepted in the initial list of goods, are Italian Wine, Sparking Wine (including Champagne), Large Format Bottles (over 2lt) and Wines with alcohol in excess of 14% by volume.

For all of those with orders pending that ship via our consols, we have arranged flights to both CA and NY for all settled invoices which should land and clear prior to the 18th.

If you have any queries on outstanding or future orders, please contact me directly and we will do our best to assist. Our fingers remained crossed for a relatively swift diplomatic resolution and we will update as soon as more information becomes available."

Hi William,

This is from one of our communications - assume you've copied it here in error as the body of your post is nothing to do with us? Can you take it down please.

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

#404 Post by William Gladstone » October 14th, 2019, 4:03 pm

Joe M wrote:
October 14th, 2019, 3:43 pm
William Gladstone wrote:
October 4th, 2019, 12:47 pm
Frank Murray III wrote:
October 3rd, 2019, 11:40 am
Is it accurate that Champagne is not part of the tariff?
"The proposed date of implementation is the 18th of this month, with our best understanding being that many French, Spanish and German wines will be levied with a 25% ad valorem tax.

Notably excepted in the initial list of goods, are Italian Wine, Sparking Wine (including Champagne), Large Format Bottles (over 2lt) and Wines with alcohol in excess of 14% by volume.

For all of those with orders pending that ship via our consols, we have arranged flights to both CA and NY for all settled invoices which should land and clear prior to the 18th.

If you have any queries on outstanding or future orders, please contact me directly and we will do our best to assist. Our fingers remained crossed for a relatively swift diplomatic resolution and we will update as soon as more information becomes available."

Hi William,

This is from one of our communications - assume you've copied it here in error as the body of your post is nothing to do with us? Can you take it down please.

Thanks!
Seems I confused emails in the midst of having several open at once on my desk top and made a real blunder of stealing the words of part of what I wrote is an email open on my desk to that written to me!
I'm so sorry for doing that - I had nothing to gain by doing this and only could have caused a poor though on a very good and honorable group we work with.
My sincere apologies! I will erase or remove now the entire portion I copied - which I obviously confused with 2 similar emails that day which we received and I must say we were all in a panic.

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

#405 Post by William Gladstone » October 14th, 2019, 4:11 pm

William Gladstone wrote:
October 4th, 2019, 12:47 pm
Frank Murray III wrote:
October 3rd, 2019, 11:40 am
Is it accurate that Champagne is not part of the tariff?
This is what our shipper - who is a shipper that many use in the wine industry, because of their constant inefficiency we have a Champagne order that part has arrived and we routed to New York, and part is sitting in temperature controlled container in Le Havre, that was expected to depart in late September and now they say October 3 and now later in October - (I checked at what point I can shoot them as in 'they shoot horses don't they?' - many in the wine industry would support me)
They wrote to us the following email - yet my staff has been unable to get them on the phone,
[

I've removed some copy that it seems accidentally I copied part of an email that an associate sent to me that was on my desk-top,
I should not have referred to them..
Sorry to all.

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

#406 Post by John Morris » October 14th, 2019, 4:26 pm

My, that was a cryptic e-mail.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#407 Post by R@y.Tupp@+sch » October 14th, 2019, 4:38 pm

Robert.A.Jr. wrote:
October 14th, 2019, 1:47 pm
Jay Miller wrote:
October 14th, 2019, 1:21 pm
Kudos to Seabrook which put a rush in and delivered my wine last Friday. I was impressed.
Yup. Kudos for truly superlative shipping service.

They got mine in under the wire, and had it nicely packed in styro with an additional thermoliner since it is still warm in Florida. They also routed it through Kentucky over Miami to avoid the South Florida heat. And early morning delivery by my request. The bottles were super pristine and each individually wrapped in cellophane. Even the wood box came wrapped in bubble.


B203FF43-E162-46FB-89AD-20A18F1B9CB2.jpeg


Now that said, this ain’t cheap! Only makes sense for premium wine or things you just cannot get here in the States.
Makes sense for wines bought in quantity as well.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#408 Post by Kelly Walker » October 18th, 2019, 7:31 pm

From Envoyer:

A message from the owner about European tariffs

Dear valued customer;

As you may know, the United States Government has issued tariffs on French, Spanish, and German still wines under 14% alcohol . At this point, Champagne, Italian wines, wines over 14% alcohol, and wines 2 liters or more are exempt. We have been following these proposed changes in the imposition of tariffs closely in the hopes the imposition of these new tariffs would not occur, and/or would be further delayed. In preparation for this change, we used our best efforts to bring in as many containers as we could before the upcoming governmental change. Also, we were able ship via air, at our cost, a container that arrived earlier this week. Unfortunately, our sea shipment that is arriving later in the month could not be expedited and will get hit by the new tariffs. In an effort to minimize the impact of the tariffs on our customers wines, we prioritized bringing in still wines from France, Germany, and Spain. Unfortunately, the majority of our Champagne and Italian wines will be delayed until after the new year. Rest assured, all of the champagne and wines in Europe are being stored in a temperature-controlled environment and have been paid for by us. We will continue to selectively sell French, German, and Spanish wines whether it be wines we own, are bringing in ourselves, or from local suppliers.

With the amount of wine we currently have in our warehouse, the shipping department will be very busy. We would appreciate if you would accommodate us if we reach out to you regarding shipping wines due to the volume in our back room. If you are unable to receive a shipment at this time, we would appreciate it if you could provide us with a future shipping date. Due to the high volume of shipments, we may not have time to send an exact list of your wines before your order is packed. We would appreciate it if we could ship all of your wines that are currently in stock, and we will send you a list once the shipment has left the building. Thank you all for your patience and your continued support during this period.
Naturally, should you have any questions or concerns, please do not hesitate to contact me.
Sincerely,

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

#409 Post by Andrew W N » October 20th, 2019, 10:01 am

Interesting piece on Pro Publica about loopholes that have worked for previous tariffs:

https://www.propublica.org/article/how- ... -canadians

Not sure if this will/can be employed by online wine retailers, but seems feasible.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#410 Post by Nola Palomar » October 20th, 2019, 10:21 am

Andrew W N wrote:
October 20th, 2019, 10:01 am
Interesting piece on Pro Publica about loopholes that have worked for previous tariffs:

https://www.propublica.org/article/how- ... -canadians

Not sure if this will/can be employed by online wine retailers, but seems feasible.
I don’t think it will work for wine because every wine that is sold in the US has a COLA certificate of label approval. It has mandatory country of origin, alc %, producer, etc. then on the import side this colas, as well as importer and producer FDA registration, prior notice has to be done. It really doesn’t matter what port it enters into United States whether it’s New York or British Columbia, it’s still has to go through the same identification purpose.
Can you imagine the cost to ship bottles of wine through Canada when most of the wine imported is brought in by container loads and pallets... Definitely need some loopholes!
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Re: US to impose 25% tariff on European wine, cheese, etc.

#411 Post by D@vid Bu3ker » October 20th, 2019, 10:40 am

Yes, it’s much more difficult for products like wine.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#412 Post by Mark Morrissette » October 23rd, 2019, 5:50 pm

I got an email today from a retailer, that is one of the most disingenuous emails I have gotten from a retailer since Premier Cru.

Subject:
"Buy your Italian wines now, before the massive tariff takes effect."
[Yes, that says Italian]

The email goes on to say:
"Starting last week, the U.S. will impose 25% tariffs on many wines from France, Spain, Germany and the U.K., [Wait. No mention of Italian?] as well as dozens of other European products, from Scotch and Irish whiskies, to Italian cheeses and olive oil, to Greek yogurt. [Ok, Italian cheese.... but Italian wine?]

"The tariffs went into effect just after midnight last Thursday, after talks between European officials and U.S. trade representatives failed.

"The tariff will be applied to all [all?] wines below 14% alcohol (except sparkling)...which is most still European wines. [Most.... as long as they are from France, Spain, Germany and the UK....]

"We don't know when these massive price hikes will be applied. We certainly hope they are not applied retroactively to products already in the country...but they certainly could be. [Could they...?] Our assumption is the next vintages on the way will have the tariffs applied (or this whole mess is figured out). Regardless, NOW is the time to buy your Italian Wines, we may never see prices this low again. [Because... why, exactly?]"
Last edited by Mark Morrissette on October 23rd, 2019, 6:15 pm, edited 1 time in total.

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

#413 Post by Kris Patten » October 23rd, 2019, 6:01 pm

Todd/Mods,

May be nice to sticky this until resolution and stop the fragmented conversations going on in other smaller threads.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#414 Post by PeterH » October 23rd, 2019, 6:10 pm

Mark, That is a stupid marketing approach, but when a large segment of a commodity is subject to unavoidable price increases, all competing fungible products usually also go up in price because of the "umbrella" provided. That is happening right now in the business I'm involved in, sporting goods.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#415 Post by Mark Morrissette » October 23rd, 2019, 6:14 pm

PeterH wrote:
October 23rd, 2019, 6:10 pm
Mark, That is a stupid marketing approach, but when a large segment of a commodity is subject to unavoidable price increases, all competing fungible products usually also go up in price because of the "umbrella" provided. That is happening right now in the business I'm involved in, sporting goods.
A very fair point, and one I did not consider.

But still, that retailer is clearly trying to suggest (without exactly saying) that Italian wines will be going up because they will have tariffs on them. Which of course, they will not.

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

#416 Post by D@vid Bu3ker » October 23rd, 2019, 6:20 pm

They are providing air cover for themselves to raise prices. I would not patronize that retailer.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#417 Post by Dan Kravitz » October 23rd, 2019, 6:52 pm

Mark,

I do not understand reluctance to name the retailer. As far as I can see, the e-mail does not contain any outright lies, but I find the tone sleazy in the extreme.

The world is not short of wine. I am afraid (and am already hearing) that most distributors and retailers will simply pass on the increases, and if that wrecks sales of French and Spanish wines, they will not buy those wines again and will sell other wines instead. Yes, for many (but a minority) of consumers, certain wines are simply not replaceable... top level Burgundy and Bordeaux come to mind. But in the mid-range (~$10 - 30 retail), the market for French and Spanish wines is being devastated.

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

#418 Post by p. raghib » October 23rd, 2019, 8:43 pm

Perhaps an odd question, but has anyone heard of anyone paying the tariff yet? Folks I’ve spoken to haven’t been hit by them yet.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#419 Post by D@vid Bu3ker » October 24th, 2019, 3:34 am

I know one importer/distributor that has been hit with the charge.

But bear in mind we are only 5 days in, and Customs clearance is not an instantaneous process.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#420 Post by YLee » October 24th, 2019, 3:36 am

p. raghib wrote:
October 23rd, 2019, 8:43 pm
Perhaps an odd question, but has anyone heard of anyone paying the tariff yet? Folks I’ve spoken to haven’t been hit by them yet.
I wasnt hit with tariff with 2 of my shipments.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#421 Post by D@vid Bu3ker » October 24th, 2019, 4:22 am

What day did the paperwork clear US Customs, and what HTS code (or codes) was on the shipment? What was the declared Country of Origin?
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Re: US to impose 25% tariff on European wine, cheese, etc.

#422 Post by Mark Morrissette » October 24th, 2019, 5:34 am

Dan Kravitz wrote:
October 23rd, 2019, 6:52 pm
Mark,

I do not understand reluctance to name the retailer. As far as I can see, the e-mail does not contain any outright lies, but I find the tone sleazy in the extreme.


Dan Kravitz
Not trying to be coy. It was Saratoga Wine Exchange. I have bought a little bit from them in the past, and they were very good to work with. But, I did find the email yesterday distasteful.

I got a new blast email this morning with a apology:

"We have been notifying our customers this week concerning the tariffs going into effect on many wines from France, Spain, Germany and the U.K., as well as dozens of other European products.

It has been brought to our attention, correctly, that the tariff does not affect Italian wine, just a number of their food products. We apologize for the poor information and certainly intended no dishonesty."

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

#423 Post by Mike DiSalvo » October 24th, 2019, 6:52 am

Didn't buy any wine affected by the tariffs recently but loaded up on parmesan reggiano cheese. Can't live without that stuff!

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

#424 Post by AndrewH » October 24th, 2019, 7:26 am

Mike DiSalvo wrote:
October 24th, 2019, 6:52 am
Didn't buy any wine affected by the tariffs recently but loaded up on parmesan reggiano cheese. Can't live without that stuff!
Crap - I should have thought to buy a wheel.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#425 Post by AndrewH » October 24th, 2019, 7:29 am

Mark Morrissette wrote:
October 23rd, 2019, 5:50 pm

"We don't know when these massive price hikes will be applied. We certainly hope they are not applied retroactively to products already in the country...but they certainly could be. [Could they...?]
As to this, no. The tariff is due on imports on/after 10/18, not on products previously entering the country.

(I'm not even sure Congress could (lawfully) pass a completel retroactive tax - usually tax bills are retroactive only to the day the bill was introduced, if that).
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Re: US to impose 25% tariff on European wine, cheese, etc.

#426 Post by D@vid Bu3ker » October 24th, 2019, 7:37 am

Once Customs has liquidated the entry they cannot impose fees, unless it is discovered that the entry was incorrect (e.g. the importer provided incorrect info such as HTS code or Country of Origin).
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Re: US to impose 25% tariff on European wine, cheese, etc.

#427 Post by Mark Morrissette » October 24th, 2019, 8:49 am

AndrewH wrote:
October 24th, 2019, 7:29 am
Mark Morrissette wrote:
October 23rd, 2019, 5:50 pm

"We don't know when these massive price hikes will be applied. We certainly hope they are not applied retroactively to products already in the country...but they certainly could be. [Could they...?]
As to this, no. The tariff is due on imports on/after 10/18, not on products previously entering the country.

(I'm not even sure Congress could (lawfully) pass a completel retroactive tax - usually tax bills are retroactive only to the day the bill was introduced, if that).
Agree.
My "Could they...?" was intended with a heavy dose of sarcasm.

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

#428 Post by Kris Patten » October 24th, 2019, 9:07 am

Mark Morrissette wrote:
October 24th, 2019, 5:34 am
Dan Kravitz wrote:
October 23rd, 2019, 6:52 pm
Mark,

I do not understand reluctance to name the retailer. As far as I can see, the e-mail does not contain any outright lies, but I find the tone sleazy in the extreme.


Dan Kravitz
Not trying to be coy. It was Saratoga Wine Exchange. I have bought a little bit from them in the past, and they were very good to work with. But, I did find the email yesterday distasteful.

I got a new blast email this morning with a apology:

"We have been notifying our customers this week concerning the tariffs going into effect on many wines from France, Spain, Germany and the U.K., as well as dozens of other European products.

It has been brought to our attention, correctly, that the tariff does not affect Italian wine, just a number of their food products. We apologize for the poor information and certainly intended no dishonesty."
Still irritating that people don't do their homework, and I am sure they got an ocean of negative feedback to then send the mea culpa.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#429 Post by Dan Kravitz » October 24th, 2019, 5:09 pm

Thanks.

I've actually done business with Saratoga Wine Exchange, as a customer. Never had a problem, but I'm not on their e-mail list, don't need to be. Sometimes when I'm hunting a bottle, they have it at the right price and the condition of everything I've bought has been fine, or I'd remember. I've crossed a lot of stores off for bottles not as described.
I'm pretty sure they've bought some of my wines, vague memory that I might have made a sales call on them about 10 years ago (can't remember every store I've walked in to with a bag of wine). Yes, the e-mail was distasteful. But better they send out a correction and a 'mea culpa' than just let it slide.

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

#430 Post by Ethan Abraham » October 29th, 2019, 8:17 am



Story about a.company importing wine in bulk and bottling it here.

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

#431 Post by Jay $$ Winton » October 29th, 2019, 8:20 am

So a question for retailers, distributors and importers: how much of the tariff are you eating or will you simply pass along to customer? Interesting to see response (or not) on this ?
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Re: US to impose 25% tariff on European wine, cheese, etc.

#432 Post by Mike Reff » October 29th, 2019, 10:32 am

We are absorbing some of the costs of the tariffs and we are also raising prices on some sku's as well. It is not going to bode well for the average consumer who will cringe when their Sancerre goes up by $6-8 per bottle

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

#433 Post by Mark Golodetz » October 29th, 2019, 11:38 am

I gather there is no dialogue. Disgusting given the impact on some business’ and how capricious was the choice of products to target.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#434 Post by Kris Patten » October 29th, 2019, 12:04 pm

Jay $$ Winton wrote:
October 29th, 2019, 8:20 am
So a question for retailers, distributors and importers: how much of the tariff are you eating or will you simply pass along to customer? Interesting to see response (or not) on this ?
Jay,

Not that simple, unfortunately. Some wines simply won't sell if you just pass on tariff, some it won't matter in the least. A lot of combinations will happen with tiers helping absorb tariff from producer to importer to distributor....retailers won't even see tariff, outside of a price increase in a catalog, unless they direct import and are then responsible for tariff themselves.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#435 Post by Nola Palomar » October 29th, 2019, 12:27 pm

I am weighing all the aspects of importing my oil in bulk and bottling here. I am evaluating costs.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#436 Post by D@vid Bu3ker » October 29th, 2019, 12:49 pm

Mark Golodetz wrote:
October 29th, 2019, 11:38 am
I gather there is no dialogue. Disgusting given the impact on some business’ and how capricious was the choice of products to target.
Capricious? Heck no. It was long planned.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#437 Post by Dan Kravitz » October 29th, 2019, 4:08 pm

My business cannot afford to absorb these tariffs. Apparently some divisions of the multinational drinks companies have assured their American distributors that their prices would not change, meaning that the importers are absorbing the hit. If you're big and diversified enough, I guess you can afford to do this.

I am relatively lucky as an importer. The biggest part of my portfolio is French Mediterranean reds that are 14+% alcohol. That alone would not be enough business to keep me going. But I am going to also import wines to be bottled here. Right now I'm looking at bringing in 3 SKUs which jointly account for 1/3 of my business by volume.

People in the wine business are both in turmoil and denial. As I've mentioned, I see zero chance that any retailer will absorb any of the costs. It's simply not in their business model.

For distributors (I have about 50 in the U.S.), one has offered to absorb 25% of the tariff cost. One has an absolute policy that they will absorb nothing and that gross profit percentage cannot be lowered, even by one point. The remaining 48 have said nothing.

On the importer side, we sent out a note on the day the tariffs hit laying out our strategy, and informing distributors that we would work with them on a case by case basis to deal with wines subject to tariffs already on the water. Some of my distributors have thanked us and many have said that they have heard absolutely nothing from most of their suppliers, to their shock and dismay. Today I was told that one mid-sized to large, well-respected old national import house announced across the board 15% price increases on wines subject to the tariffs.

Not a single one of my suppliers has said that they will reduce their price by 20%, which would fully compensate for the tariffs. A small number have offered smaller price concessions.

Many of our Mediterranean producers are submitting samples to certified laboratories so that they can relabel from 14% to 14.1% =- 14.5%. As mentioned, a year ago the tax category of 'table wine' in the U.S. was expanded from 7 - 14% to 7 - 16%. Under French law, growers are allowed a half point of wiggle room in labeling. Until last year, it was customary to label wines from 14.1 - 14.5% (that's a lot of wine) as 14% to avoid the higher U.S. tax on what was legally "fortified" wine (even though it wasn't fortified). When the category was expanded to 16%, virtually nobody bothered to change their labels, leaving wines labeled 14% subject to the tariffs. Thus the boom in business for certified French laboratories inundated with wines to be tested for alcohol.

I have already laid off 4 employees. It hurts. I hope to avoid any more layoffs. I am restructuring the business to avoid all wines subject to tariffs, as nobody knows if the tariffs will last for two more days or two more decades. I expect that a lot of my competition will disappear. This does not make me happy. A lot of good people with small businesses are being devastated.

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

#438 Post by Hank Victor » October 29th, 2019, 4:22 pm

Many of our Mediterranean producers are submitting samples to certified laboratories so that they can relabel from 14% to 14.1% =- 14.5%. As mentioned, a year ago the tax category of 'table wine' in the U.S. was expanded from 7 - 14% to 7 - 16%. Under French law, growers are allowed a half point of wiggle room in labeling. Until last year, it was customary to label wines from 14.1 - 14.5% (that's a lot of wine) as 14% to avoid the higher U.S. tax on what was legally "fortified" wine (even though it wasn't fortified). When the category was expanded to 16%, virtually nobody bothered to change their labels, leaving wines labeled 14% subject to the tariffs. Thus the boom in business for certified French laboratories inundated with wines to be tested for alcohol.

I have already laid off 4 employees. It hurts. I hope to avoid any more layoffs. I am restructuring the business to avoid all wines subject to tariffs, as nobody knows if the tariffs will last for two more days or two more decades. I expect that a lot of my competition will disappear. This does not make me happy. A lot of good people with small businesses are being devastated.

Dan Kravitz

Didn't know about the table wine alcohol % expansion to 16%. Thanks for sharing Dan.

Sorry to hear about layoffs and business restructuring.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#439 Post by Jay $$ Winton » October 29th, 2019, 6:51 pm

Thanks Dan. I only hope other ITB folks are as honest as you are.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#440 Post by AndrewH » October 30th, 2019, 7:43 am

D@vid Bu3ker wrote:
October 29th, 2019, 12:49 pm
Mark Golodetz wrote:
October 29th, 2019, 11:38 am
I gather there is no dialogue. Disgusting given the impact on some business’ and how capricious was the choice of products to target.
Capricious? Heck no. It was long planned.
+1. I don't like the tariffs, and I don't like tariffs generally because I like free trade. But these were announced months ago, and just waiting for final approval, and the products were identified to create more political pressure.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#441 Post by William Woodruff » October 30th, 2019, 12:49 pm

We just received the bill from US customs for $14,000. Normally it is $6,000.

William

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

#442 Post by Nola Palomar » October 30th, 2019, 2:29 pm

William Woodruff wrote:
October 30th, 2019, 12:49 pm
We just received the bill from US customs for $14,000. Normally it is $6,000.

William
Are you ITB? Importer?
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Re: US to impose 25% tariff on European wine, cheese, etc.

#443 Post by Dan Kravitz » October 30th, 2019, 3:01 pm

William,

I am sorry about your bill. I managed to stop some shipments, but as much of my business is with distributors that put my wines on their own containers I'm getting hit regularly as shipments of from 1 - 10 pallets on their containers come in and we negotiate spreading the pain. In most cases, I have to absorb most of it. Right now it's coming fast, as everybody was stocking up.

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

#444 Post by William Woodruff » October 30th, 2019, 3:10 pm

Importer.

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

#445 Post by Kris Patten » October 30th, 2019, 7:15 pm

William Woodruff wrote:
October 30th, 2019, 3:10 pm
Importer.
The value of product on your container was obviously much higher to account for the increase? No sense of a like container costing $14k vs. "normal" $6k since a 25% tariff would equate to $7500.

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

#446 Post by Nola Palomar » October 30th, 2019, 7:24 pm

Not really Kris, Normal duty and tariffs were:
2204.21.50.55 white wine 14% and less — 6.3 cents per liter
2204.21.50.40 red wine 14% and less — 6.3 cents per liter
Now add a 25% tariff on the VALUE not the quantity

I don't know the size of your shipment but it sounds like a 40 ft container.
My containers I would load around 9300 Liters so if everything is 14% and under the normal tariff would be around $600.00 plus port fees and then there are other taxes etc, so round up to $1000. Plus your shipping charges, around $5000-6000 could be more.
The lets assign a price per bottle of oh say $5/ bottle 9300L / 0.75 = 12,400 bottles at $5 / bottle 62,000 x 25% tariff = $15,500 + the regular tariff and shipping.
Last edited by Nola Palomar on October 31st, 2019, 4:00 am, edited 1 time in total.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#447 Post by D@vid Bu3ker » October 31st, 2019, 3:46 am

Thanks Nola. That was well explained.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#448 Post by Markus S » October 31st, 2019, 6:03 am

Dan Kravitz wrote:
October 30th, 2019, 3:01 pm
In most cases, I have to absorb most of it.
I thought the consumers were the ones paying for the increase? That's how I see it at the retail level. I think we ALL are taking hits.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#449 Post by AndrewH » October 31st, 2019, 6:41 am

Markus S wrote:
October 31st, 2019, 6:03 am
Dan Kravitz wrote:
October 30th, 2019, 3:01 pm
In most cases, I have to absorb most of it.
I thought the consumers were the ones paying for the increase? That's how I see it at the retail level. I think we ALL are taking hits.
That assumes the distributor or retailer can pass on the higher cost resulting from the tariffs. If the contract doesn't allow that, then the distributor is stuck. And of course the retailer has to be able to sell the wine at the higher price it paid (plus whatever markup it has). That could be a challenge if a $20 wine at retail becomes a $25 wine at retail and is no longer price-competitive with wines not subject to the tariff, leaving the retailer stuck with that wine.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#450 Post by D@vid Bu3ker » October 31st, 2019, 7:48 am

Markus S wrote:
October 31st, 2019, 6:03 am
Dan Kravitz wrote:
October 30th, 2019, 3:01 pm
In most cases, I have to absorb most of it.
I thought the consumers were the ones paying for the increase? That's how I see it at the retail level. I think we ALL are taking hits.
That will eventually happen. Initially much of the pain will be further upstream. Likely very specific to given wines and/or distribution arrangements as mentioned just above.
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