On June 15th 2021, the US and EU reached an agreement to end a dispute over whether the US was throwing more money at Boeing or the EU was throwing more money at Airbus. The tariffs that were placed on wines from France, Spain, Germany and the UK were halted until at least 6/15/26. That agreement remains in place.
I believe that as President, Mr. Trump could unilaterally abrogate the agreement, although he might choose not to do so.
It’s not implausible that we could see a situation where tariffs were imposed on Italian, Portuguese and other European wines, but not on those from the four countries that are joint partners in Airbus.
I don’t think it’s possible to make a guess on how this will play out.
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This is not good for wine lovers
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What national emergency?
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Guys, let’s try and keep the political stuff out, otherwise it will be moved to politics. This is a pretty important issue, and moving it would not be helpful.
I will start a new thread in politics,bsonwe can vent to our heart’s content.
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It’s an extremely simple topic. Tariffs can be imposed with essentially no means of restraint, and thereby make every imported good more expensive (not to mention domestic goods that utilize foreign components/ingredients).
End of story. If the tariffs are imposed there is no way around them other than waiting until they go away.
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And the wine business will pass along the cost of the tariffs to the client.
There is no way around that either. Too many businesses went out trying to wait them out last time.
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Yep. It was a much shorter wait last time as well, as the tariffs were not a day 1 thing. Looks different this time.
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I already noticed a 10% (or so) increase in the price for many pre-arrival foreign wines at one of the on-line wine stores I use frequently. It is reasonable to assume the increase is in anticipation of the coming tariffs.
We all assume that tariffs are coming and we are probably right. But there are an almost infinite number of variables here.
The tariffs on French, Spanish, German and (gasp!) English wine started on 10/17/19 were imposed as part of a tit-for-tat in the dispute over subsidies for Boeing and Airbus. The tariffs were lifted on 6/15/21 in an agreement meant to last five years.
Will they be reimposed immediately, with the four EU countries immediately reimposing their tariffs? I don’t know. Neither do you. I think it’s a safe bet that neither Donald Trump nor his incoming team know either.
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And I’ll add we also don’t know the basis Trump/team will use for imposing any tariffs. The Airbus-related tariffs were pursuant to an established process for when retaliatory tariffs are allowed. That’s not what would be happening here.
As the CNN article above explains, there are various authorities Trump could use, but each has limitations and could be subject to various legal challenges depending on how they are implemented, including whether the authority exists at all under a given statute (what’s the national emergency?) and whether procedures were followed. In 2017, the China tariffs were imposed after a lengthy process to determine the trade violations China had engaged in. Let’s see if something similar happens here.
Just to be clear. It is the EU as a whole that imposes tariffs. Not single countries.
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Thank you, I knew that but was focused on the four countries directly affected by the American tariffs and did not think beyond them.
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There is a reason you do not make assumptions. This is case in point. This sounds more like supply and demand more than anticipation of something that may or may not happen.
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Just to make things interesting, there is a potential dock strike ahead. We talked about it earlier in the thread, but January 15th is the deadline for a new deal.
https://thehill.com/business/5071302-longshoremen-strike-usmx-negotiations/
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CNN reporting that a tentative agreement has been reached which will avert a strike.
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Does anyone posting on this thread actually need more wine?
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Went to the store today and bought 2022 Sauzet Bourgogne Blanc, and 2022 Paul Pillot Bourgogne Blanc.
I felt old going “man, I remember when these were $25”. Then I had a moment of, “am I really going to buy these if they are 20% more?”
I then started scanning the US section for cheaper whites that I might consider drinking if tariffs hit…I guess I’m not drinking Chardonnay for a LONG time!
Pick me!!
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Move this to politics and I will suggest an answer.
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You can DM me. I’m open minded and curious by what you have to say.