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

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

#51 Post by Ian S » October 2nd, 2019, 7:06 pm

Guess my wife and I can wave bye-bye to Mosel Riesling for a while. [cry.gif]
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Re: US to impose 25% tariff on European wine, cheese, etc.

#52 Post by Tom G l a s g o w » October 2nd, 2019, 7:07 pm

Tom G l a s g o w wrote:
October 2nd, 2019, 7:00 pm
John Morris wrote:
October 2nd, 2019, 2:54 pm
GregT wrote:
October 2nd, 2019, 2:42 pm
But Airbus has been directly subsidized for many years. I always wondered why the US just ignored that. And China is and has done the same - directly pump state money into enterprises so that they could compete with other countries.

More importantly though, tariffs have never been shown to work well long term - Jefferson found that out, and American Airlines, JetBlue, Frontier, and others are flying Airbus planes. So why tariff cheese instead of those planes?
The EU has argued for years (I think for two decades or so) that Boeing benefits from subsidies because its defense aircraft contracts help underwrite development of civilian aircraft. So it wasn't as simple as "they subsidize, we don't." And I believe that the EU governments have curtailed their subsidies to Airbus over the last 15 years or so, as the company grew bigger and more solid. Since Airbus was formed with government support so a European company could compete with the likes of Boeing and Lockheed, it was hard for the British, French, German and Spanish governments not to keep supporting it.
Apparently, the ruling on Airbus came first and the Boeing ruling will be later. The US and EU couldn’t come to an agreement on subsidies to aerospace. No surprise in this environment.
Edit the above was mentioned earlier.

The EU objects to Boeing/Lockheed tax incentives as well.

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

#53 Post by Robert.A.Jr. » October 2nd, 2019, 7:11 pm

Phuck. I have to go back to Ovid?

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

#54 Post by John Morris » October 2nd, 2019, 7:22 pm

Kevin Gibbs wrote:
October 2nd, 2019, 6:17 pm
John Morris wrote:
October 2nd, 2019, 5:46 pm
On your assumptions, the price would rise 25% to $62.50.

But basic economics will tell you that the sellers (producers, importers, distributors, retailers) will eat (as it were) part of the increase, because the increase in price will reduce demand and they'll be better off to retain sales by absorbing some of the loss. It is almost never the case that an increase in costs or taxes is passed through 100%.

The good news is that the euro is down to $1.10 (from a high in the $1.40s in 2011) (oh, that nasty Federal Reserve driving up the dollar!), which mitigates this somewhat.
That isn’t correct. The tariffs are calculated as 25% of the import cost, not the retail sales price.
Did you read what I was responding to? It was:
David_K wrote:
October 2nd, 2019, 5:33 pm
So what is the practical increase on the end-cost to consumers? If a bottle is $50 on the shelf now, and holding all other variables equal (exchange rate, markup, etc.), the next vintage is subject to the tariff, what will next year's shelf price be?
If the mark-up stays the same in percentage terms, the middlemen will take their cut based on a post-tariff price and that cut will be 25% larger in dollar terms. That will get you to $62.50, before factoring elasticity etc.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#55 Post by John Morris » October 2nd, 2019, 7:23 pm

Robert.A.Jr. wrote:
October 2nd, 2019, 7:11 pm
Phuck. I have to go back to Ovid?
There's a rumor going round about an extra surcharge on stinky green French cab franc.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#56 Post by Robert.A.Jr. » October 2nd, 2019, 7:33 pm

John Morris wrote:
October 2nd, 2019, 7:23 pm
Robert.A.Jr. wrote:
October 2nd, 2019, 7:11 pm
Phuck. I have to go back to Ovid?
There's a rumor going round about an extra surcharge on stinky green French cab franc.
If the tariff applies to foie gras, I’m voting for Bernie!

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

#57 Post by NED VALOIS » October 2nd, 2019, 7:36 pm

I don't think you will have a chance to do so.

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

#58 Post by John Morris » October 2nd, 2019, 7:40 pm

Robert.A.Jr. wrote:
October 2nd, 2019, 7:33 pm
John Morris wrote:
October 2nd, 2019, 7:23 pm
Robert.A.Jr. wrote:
October 2nd, 2019, 7:11 pm
Phuck. I have to go back to Ovid?
There's a rumor going round about an extra surcharge on stinky green French cab franc.
If the tariff applies to foie gras, I’m voting for Bernie!
I heard he plans to tax it out of existence.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#59 Post by Robert.A.Jr. » October 2nd, 2019, 7:40 pm

John Morris wrote:
October 2nd, 2019, 7:40 pm
Robert.A.Jr. wrote:
October 2nd, 2019, 7:33 pm
John Morris wrote:
October 2nd, 2019, 7:23 pm


There's a rumor going round about an extra surcharge on stinky green French cab franc.
If the tariff applies to foie gras, I’m voting for Bernie!
I heard he plans to tax it out of existence.
Now that he is all stented up, perhaps true.

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

#60 Post by Rory K. » October 2nd, 2019, 7:49 pm

I managed to get a whole suitcase full of Rioja, Sherry, and little cans of foi gras out of Madrid two weeks ago and customs waved us all through, now I wish I'd done two suitcases!
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Re: US to impose 25% tariff on European wine, cheese, etc.

#61 Post by Kevin Gibbs » October 2nd, 2019, 7:52 pm

John Morris wrote:
October 2nd, 2019, 7:22 pm
Kevin Gibbs wrote:
October 2nd, 2019, 6:17 pm
John Morris wrote:
October 2nd, 2019, 5:46 pm
On your assumptions, the price would rise 25% to $62.50.

But basic economics will tell you that the sellers (producers, importers, distributors, retailers) will eat (as it were) part of the increase, because the increase in price will reduce demand and they'll be better off to retain sales by absorbing some of the loss. It is almost never the case that an increase in costs or taxes is passed through 100%.

The good news is that the euro is down to $1.10 (from a high in the $1.40s in 2011) (oh, that nasty Federal Reserve driving up the dollar!), which mitigates this somewhat.
That isn’t correct. The tariffs are calculated as 25% of the import cost, not the retail sales price.
Did you read what I was responding to? It was:
David_K wrote:
October 2nd, 2019, 5:33 pm
So what is the practical increase on the end-cost to consumers? If a bottle is $50 on the shelf now, and holding all other variables equal (exchange rate, markup, etc.), the next vintage is subject to the tariff, what will next year's shelf price be?
If the mark-up stays the same in percentage terms, the middlemen will take their cut based on a post-tariff price and that cut will be 25% larger in dollar terms. That will get you to $62.50, before factoring elasticity etc.
Yes. I read the post to which you were responding. I stated that the tariffs are calculated based on the cost to the importer. As you, IMO, correctly stated in the post to which I responded, it is likely that the distribution chain will absorb a portion of the tariff cost. Therefore, the cost to the end-user customer will likely not even be as high as 25% of the import cost. In my opinion, importers, distributors and/or retailers that apply a markup percentage to the cost of tariffs imposed are likely to soon find their doors closed, and deservedly so.

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

#62 Post by John Morris » October 2nd, 2019, 7:57 pm

My answer was based on the assumption of a 25% increase of the import price. But if the middlemen's margin percentages remain the same, the ultimate retail price will be 25% higher.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#63 Post by Kevin Gibbs » October 2nd, 2019, 8:03 pm

John Morris wrote:
October 2nd, 2019, 7:57 pm
The question I was responding to was, what would the price be, assuming the markups stay the same. The answer to that question is $62.50.

That may be unrealistic in real life (we both agree), but that's what we were asked to assume.
Yes. I went back and looked at that post again. My apologies. You are correct that he did state assuming the markups stay the same. I agree with you that $62.50 is correct under that assumption. However, I believe you and I are both in agreement that particular assumption is a bad one.

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

#64 Post by JonathanG » October 2nd, 2019, 8:07 pm

It will be an interesting economic experiment. I do not think that it is as simplistic as to say retail prices will go up by 25%. If that were the case (and all other variables were the same) that would simply mean that retailers were not charging enough for the wine currently. The laws of supply and demand will have to kick in, and the price will ultimately settle at a point the market will bear. If people aren't willing to spend 25% more, then retailers will have to drop prices. Perhaps consumers will be willing to suck up a 10% increase, but maybe no more, which would ultimately force the wineries and wholesalers to suck up the rest. It's a losing proposition for everyone really, but at the end of the day, the market will ultimately determine what people should pay for post-tariff bottles.

I personally would just increase my purchases of older vintages at auction if everything goes up by 25%.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#65 Post by Nola Palomar » October 2nd, 2019, 8:34 pm

An importer generally increases her price to at least 33% over her cost. The importer pays all duties and fees associated with the shipment. Then she sells to the wholesaler at the price x. Those duties will be passed on to the wholesaler and then on to the retailer and ultimately to the consumer. So take a $5 bottle of wine for example.

$5 EX Cellar
X 33% importers margin $6.55
X 25% tariff $8.31
X 33% cost to wholesaler / distributor $8.31
X 33% cost to retailer $11.05
X 33% minimum cost to consumer. $14.70

I used 33% because we still have a number of control states which controls the price to the wholesaler, retailer, and state minimum to the customer. Ohio for example is a mandatory 33% mark up plus tax at every stage For state minimums pricing.

On food products because they are not regulated by the states LCB, you can cut out some of the middleman but it’s still going to increase the price to the end consumer tremendously. I will need to go back and reprice everything!
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Re: US to impose 25% tariff on European wine, cheese, etc.

#66 Post by Adam Frisch » October 2nd, 2019, 8:37 pm

That means you'll have but no choice to buy your Riesling from me next season! [dance-clap.gif]

Honestly, maybe our president should read up on basic economics, especially Mercantilism. And why that didn't work so well.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#67 Post by Kent Comley » October 2nd, 2019, 9:03 pm

Will be good for Australia's wine exports and industry, so I guess I should be pleased, but increased global trade barriers can only have a detrimental effect on the broader global economy if the economics they taught me at Uni many moons ago is correct.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#68 Post by NED VALOIS » October 2nd, 2019, 9:11 pm

Should I have concerns about price changes on '16 Bordeaux future that are paid for but still in France ?

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

#69 Post by Alan Rath » October 2nd, 2019, 9:30 pm

If each tier takes its normal margin, it doesn’t matter to the end consumer. But as has been said, there will probably be some minor absorption of the additional cost, so maybe we’ll see some wines at less than the 25% increase retail.

I don’t think it’s political to say how ridiculous it is to think you are punishing an exporter when you end up punishing the importer and end consumers just as much - or more.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#70 Post by JonathanG » October 2nd, 2019, 9:32 pm

that is a great question. I have a ton of 2018 futures waiting too. One would think that when you bought your futures, your price was fixed, so its up to the retailers and everyone else up the value chain to sort that one out. I am assuming that since I paid a fixed price for my EPs, its up to the retailer to deliver. I don't know how it works as between my retailer and their supplier...
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Re: US to impose 25% tariff on European wine, cheese, etc.

#71 Post by John Morris » October 2nd, 2019, 9:49 pm

Kevin Gibbs wrote:
October 2nd, 2019, 8:03 pm
Yes. I went back and looked at that post again. My apologies. You are correct that he did state assuming the markups stay the same. I agree with you that $62.50 is correct under that assumption. However, I believe you and I are both in agreement that particular assumption is a bad one.
Yup.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#72 Post by John Morris » October 2nd, 2019, 9:50 pm

NED VALOIS wrote:
October 2nd, 2019, 9:11 pm
Should I have concerns about price changes on '16 Bordeaux future that are paid for but still in France ?
Yup. If they haven't entered the country by Oct. 15, the tariff will have to be paid.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#73 Post by John Morris » October 2nd, 2019, 9:52 pm

Nola Palomar wrote:
October 2nd, 2019, 8:34 pm
An importer generally increases her price to at least 33% over her cost. The importer pays all duties and fees associated with the shipment. Then she sells to the wholesaler at the price x. Those duties will be passed on to the wholesaler and then on to the retailer and ultimately to the consumer. So take a $5 bottle of wine for example.
Except that these things never are fully passed along, for the reasons above. Only if demand were inelastic would it be passed along 100%.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#74 Post by John Morris » October 2nd, 2019, 9:54 pm

JonathanG wrote:
October 2nd, 2019, 9:32 pm
that is a great question. I have a ton of 2018 futures waiting too. One would think that when you bought your futures, your price was fixed, so its up to the retailers and everyone else up the value chain to sort that one out. I am assuming that since I paid a fixed price for my EPs, its up to the retailer to deliver. I don't know how it works as between my retailer and their supplier...
I think if you read the fine print, you'll see that they can pass on duties, taxes, etc. imposed later. You have less leverage pricewise than the person who's not in a contract, where the retailer/distributor/importer will likely part of it.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#75 Post by Jack Linden » October 2nd, 2019, 11:04 pm

Please correct me if I'm wrong about this; it's entirely possible.

Looking at the latest Harmonized US Tariff Schedule, Heading/Subheading 2204.21.50 puts a tariff of 6.3 cents/litre on "other" (not sparkling, not tokay, not marsala, etc.) wines in containers smaller than 2 litres and valued over $1.05/litre. That seems to cover most of the bottles we would be concerned with on this forum. Does this annoucement not mean that this existing tariff of 6.3 cents/litre will rise by 25% - to 7.875 cents? If so, is that not negligible in the larger scheme of things?

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

#76 Post by Martin Zwick » October 2nd, 2019, 11:13 pm

GregT wrote:
October 2nd, 2019, 2:42 pm
But Airbus has been directly subsidized for many years. I always wondered why the US just ignored that. And China is and has done the same - directly pump state money into enterprises so that they could compete with other countries.


Don't forget that the WTO will also make a judgement in around 8 months whether USA subsidized Boing.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#77 Post by Tom Reddick » October 2nd, 2019, 11:27 pm

Thank you for posting this- you have done a great thing John. I am surely not the only person who did not see this coming and who is facing a pretty material personal impact potentially. I have a couple of questions please for anyone with expertise in this realm,

1. I assume this applies to secondary market as well, correct? For example, a UK broker selling old French wine that is to be imported to the US- the tariff will apply?

2. What is the point/date in the delivery process where the tariff is assessed? For example, if someone had several cases of old French wine coming to the US from the UK, would the tariff be assessed based on the actual date the product left the UK, or the date it arrived on US shores?

Reading the articles, and between the lines, I am hopeful this will not be implemented, but given the implications one is wise to plan and move quickly as needed.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#78 Post by Robert Sand » October 2nd, 2019, 11:50 pm

Simple: thanks to everybody who voted for Trump ....

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

#79 Post by Mike Miller » October 3rd, 2019, 12:13 am

Dennis Atick wrote:
October 2nd, 2019, 4:25 pm
Jeez, how did we ever end up in this situation?
Pretty easy to figure out. I can’t spell it out because of guidelines. But it fairly obvious.

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

#80 Post by Jason T » October 3rd, 2019, 2:45 am

Mike Miller wrote:
October 3rd, 2019, 12:13 am
Dennis Atick wrote:
October 2nd, 2019, 4:25 pm
Jeez, how did we ever end up in this situation?
Pretty easy to figure out. I can’t spell it out because of guidelines. But it fairly obvious.
Given his participation in the other forum, I’m thinking Dennis knows that - and thus his question is rhetorical.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#81 Post by D@vid Bu3ker » October 3rd, 2019, 2:53 am

Jack Linden wrote:
October 2nd, 2019, 11:04 pm
Please correct me if I'm wrong about this; it's entirely possible.

Looking at the latest Harmonized US Tariff Schedule, Heading/Subheading 2204.21.50 puts a tariff of 6.3 cents/litre on "other" (not sparkling, not tokay, not marsala, etc.) wines in containers smaller than 2 litres and valued over $1.05/litre. That seems to cover most of the bottles we would be concerned with on this forum. Does this annoucement not mean that this existing tariff of 6.3 cents/litre will rise by 25% - to 7.875 cents? If so, is that not negligible in the larger scheme of things?
No. It’s a 25% surcharge, not a 25% increase in the tariff schedule.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#82 Post by D@vid Bu3ker » October 3rd, 2019, 2:55 am

Tom Reddick wrote:
October 2nd, 2019, 11:27 pm
Thank you for posting this- you have done a great thing John. I am surely not the only person who did not see this coming and who is facing a pretty material personal impact potentially. I have a couple of questions please for anyone with expertise in this realm,

1. I assume this applies to secondary market as well, correct? For example, a UK broker selling old French wine that is to be imported to the US- the tariff will apply?

2. What is the point/date in the delivery process where the tariff is assessed? For example, if someone had several cases of old French wine coming to the US from the UK, would the tariff be assessed based on the actual date the product left the UK, or the date it arrived on US shores?

Reading the articles, and between the lines, I am hopeful this will not be implemented, but given the implications one is wise to plan and move quickly as needed.
If the goods are not in the USA and through the Customs clearance process by October 15 then the tariff applies. Nothing else matters.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#83 Post by Howard Cooper » October 3rd, 2019, 3:52 am

Robert.A.Jr. wrote:
October 2nd, 2019, 7:03 pm
Howard Cooper wrote:
October 2nd, 2019, 3:02 pm
DanielP wrote:
October 2nd, 2019, 2:45 pm
It says wine not over 14%. Will we be seeing alot of 14.1% alcohol wine?
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Re: US to impose 25% tariff on European wine, cheese, etc.

#84 Post by Jay Miller » October 3rd, 2019, 3:53 am

Damn. I ah e a case pending shipment from London that will cost a lot more,than I expected. At least the bottl of Sherry gets in free.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#85 Post by D@vid Bu3ker » October 3rd, 2019, 4:14 am

Jay Miller wrote:
October 3rd, 2019, 3:53 am
Damn. I ah e a case pending shipment from London that will cost a lot more,than I expected. At least the bottl of Sherry gets in free.
Unless your agent through the customs process is quite sophisticated, I expect you will pay 25% on the case. The agent will likely declare a single HTS code for the case, rather than multiple codes.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#86 Post by dennis.coronado » October 3rd, 2019, 4:19 am

Robert Sand wrote:
October 2nd, 2019, 11:50 pm
Simple: thanks to everybody who voted for Trump ....
This goes back 15 years over a complaint to WTO over EU subsidies to Airbus.

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

#87 Post by Robert.A.Jr. » October 3rd, 2019, 4:20 am

Jay Miller wrote:
October 3rd, 2019, 3:53 am
Damn. I ah e a case pending shipment from London that will cost a lot more,than I expected. At least the bottl of Sherry gets in free.
I didn’t think about this. Me too. And I already paid the shipment!

So is the tariff applicable to purchases before 10/15 that just happen to be shipped later?

25% is a big number.

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

#88 Post by Neal.Mollen » October 3rd, 2019, 4:51 am

Ethan Abraham wrote:
October 2nd, 2019, 3:54 pm
D@vid Bu3ker wrote:
October 2nd, 2019, 3:50 pm
Alan Rath wrote:
October 2nd, 2019, 3:49 pm
Does anyone know how the tariffs kick in? Like wines already contracted/purchased but not shipped?
If the wines have not been accepted through US Customs prior to the date then the tariffs kick in.
So what happens to retailers that have sold millions of dollars of bordeaux futures...
This is an excellent question I had not considered.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#89 Post by Michae1 P0wers » October 3rd, 2019, 4:57 am

dennis.coronado wrote:
October 3rd, 2019, 4:19 am
Robert Sand wrote:
October 2nd, 2019, 11:50 pm
Simple: thanks to everybody who voted for Trump ....
This goes back 15 years over a complaint to WTO over EU subsidies to Airbus.
That is merely the circumstance which allows this decision, not the actual cause of it. Just because we are now allowed to do this doesn’t mean we have to do so. Very much hope this is a short-lived state of affairs.
Last edited by Michae1 P0wers on October 3rd, 2019, 5:03 am, edited 2 times in total.

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

#90 Post by Neal.Mollen » October 3rd, 2019, 4:58 am

dennis.coronado wrote:
October 3rd, 2019, 4:19 am
Robert Sand wrote:
October 2nd, 2019, 11:50 pm
Simple: thanks to everybody who voted for Trump ....
This goes back 15 years over a complaint to WTO over EU subsidies to Airbus.
A couple of points. No one on this board is less of a fan of the current regime than me, but this is really not his doing. As indicated, this WTO proceeding has been pending forever (a tit-for-tat European complaint is also pending, we are almost certain to lose that one, and there will be a commensurate increase in tariffs coming back the other way next year).

Moreover, this is positively anti-Trumpian in its approach to trade. Rather than simply declaring a trade war and imposing tariffs, we (i.e., the US government) pursued the lawful process, litigated the case to its conclusion over a course of years, and got permission to levy the tariffs as damages for harm done by the responding countries.

So yeah, this may be the ONLY instance in which thanking Trump voters is misplaced.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#91 Post by Marcu$ Stanley » October 3rd, 2019, 5:06 am

Re futures, isn’t the whole point of futures contracts to insure you against unexpected changes in price? Seems pretty useless if the merchant then refuses to absorb them

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

#92 Post by Tom G l a s g o w » October 3rd, 2019, 5:26 am

D@vid Bu3ker wrote:
October 3rd, 2019, 2:53 am
Jack Linden wrote:
October 2nd, 2019, 11:04 pm
Please correct me if I'm wrong about this; it's entirely possible.

Looking at the latest Harmonized US Tariff Schedule, Heading/Subheading 2204.21.50 puts a tariff of 6.3 cents/litre on "other" (not sparkling, not tokay, not marsala, etc.) wines in containers smaller than 2 litres and valued over $1.05/litre. That seems to cover most of the bottles we would be concerned with on this forum. Does this annoucement not mean that this existing tariff of 6.3 cents/litre will rise by 25% - to 7.875 cents? If so, is that not negligible in the larger scheme of things?
No. It’s a 25% surcharge, not a 25% increase in the tariff schedule.
right a 25% ad valorem tax, massive increase compared to the current tariff.
Has anyone read anything on whether if the 25% were applied to all the listed goods, if the tariff surcharge would exceed the total amount allowed of $7.5 billion of goods?
Note the tariff goes into effect 10/18, quick trip to the euro zone?

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

#93 Post by Robert M yers » October 3rd, 2019, 5:28 am

So Airbus/Europe cheat Boeing and the legal process results in how much money to my pocketbook? [head-bang.gif]

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

#94 Post by Tom G l a s g o w » October 3rd, 2019, 5:29 am

Marcu$ Stanley wrote:
October 3rd, 2019, 5:06 am
Re futures, isn’t the whole point of futures contracts to insure you against unexpected changes in price? Seems pretty useless if the merchant then refuses to absorb them
Price changes in the market are what you’re buying protection from, not regulatory changes. Read the terms of your contract. Also, note that prices could be negatively effected, but not if you’re locked in with futures.

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

#95 Post by Tom G l a s g o w » October 3rd, 2019, 5:31 am

Robert M yers wrote:
October 3rd, 2019, 5:28 am
So Airbus/Europe cheat Boeing and the legal process results in how much money to my pocketbook? [head-bang.gif]
The other shoe, the EU challenging subsidies to Boeing and Lockheed, will be decided later. The EU may not prevail. This is a dispute that should have been settled and hopefully will.

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

#96 Post by BenW » October 3rd, 2019, 5:33 am

Going to be some complicated situations with the likes of Envoyer. They have multiple shipments of some champagnes and provisionally allocate them. Difficult conversation to say “well you had your wine but you didn’t pick it up, so we gave it to someone else and now you need to pay 25% more when the next shipment comes in”.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#97 Post by A.Gillette » October 3rd, 2019, 5:57 am

Unless a particular merchant is tied to a specific delivery date in the next few months, I assume that they will just delay import of wines purchased on futures to the US and leave their wines in European storage until early next year when the Boeing ruling is delivered. I don't think anyone expects this to be a permanent tariff.
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Re: US to impose 25% tariff on European wine, cheese, etc.

#98 Post by Tom G l a s g o w » October 3rd, 2019, 6:18 am

A.Gillette wrote:
October 3rd, 2019, 5:57 am
Unless a particular merchant is tied to a specific delivery date in the next few months, I assume that they will just delay import of wines purchased on futures to the US and leave their wines in European storage until early next year when the Boeing ruling is delivered. I don't think anyone expects this to be a permanent tariff.
Interesting thought, but if the EU prevails I don’t see this as removing these current surcharges. The EU will be able to surcharge US goods seems the likely result. Then you’ll need to wait for a resolution, could be years.

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

#99 Post by Robert.A.Jr. » October 3rd, 2019, 6:28 am

So I am now expediting my shipment, paid an up-charge for a thermal liner and morning delivery. Bummer that it's still warm in FL, but don't wanna pay what will be a $500 tariff on a single case.

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

#100 Post by Ethan Abraham » October 3rd, 2019, 6:42 am

BenW wrote:
October 3rd, 2019, 5:33 am
Going to be some complicated situations with the likes of Envoyer. They have multiple shipments of some champagnes and provisionally allocate them. Difficult conversation to say “well you had your wine but you didn’t pick it up, so we gave it to someone else and now you need to pay 25% more when the next shipment comes in”.
I don't think champagne is included.

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