Can goods be brought to the US and stored here in some sort of “pre-import/tariff zone” (yeah, I made that up), something similar to in bond in the UK, where taxes/duries/tariffs are not due until the goods leave the tax-free zone?
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They’re going to be eating that tariff when we cancel our orders and get refunds.
Up to the EU to make a deal. I’m sure it’s coming sooner than later.
Maybe?
My point is that it’s probably too much of an unknown to reasonably do that, not knowing when you’ll realize that cash flow, plus storage costs, etc.
Figure their cash flow is going to be worse when they have to refund all these orders. Keep in mind they got 50% down at time of order and charged balance due sometime last November. This wine is paid for save for the tariffs, now they’re going to be refunding me and paying the tariff + the charge back fee to refund me.
You mean a free port?
This is from 1937: People: Free Port | TIME
Storage costs still apply, so not sure if there is any advantage keeping here vs. in the EU. Perhaps a drop in EU-US trade gets you cheaper transit than in the future.
Not be be confused with Freeport:
Decades before the wines will be ready to drink.
Yes, that’s what I had in mind. Thinking it might be an alternative for wine that was shipped but didn’t get here before the deadline. Of course temp-controlled storage would be an issue as you point out.
It was mentioned upthread, but as long as the wine was in transit (i.e. exited the EU) before the tariffs were in place, they would not apply. Given then competency of this regime, YMMV.
So you’re gonna decline these and request refund?
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Total Wine, like everyone buys from a negociant for the same price. They cannot go around the negociant system.
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Bordeaux is the most transparent wine region in the world. You know how many cases they produce and the price being charged for the wine. Plus, all negociants charge the same price to importers, merchants, etc. Though, in today’s world, low demand, coupled with high interest rates, some negociants discreetly discount select wines to some buyers, or offer preferential payment schedules, etc.
Is this per market (country) or across the world/continents?
Many time when I see US Bordeaux prices I’m surprised how good they are compared to Europe.
There was a 30 day limit to clear US Customs in at least one of the Federal Register notices I looked at (I was deeply investigating China tariffs). I don’t know if the blanket 10% had that or not. Will have to check.
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No deal is going to remove the 10%. That’s here to stay for the foreseeable future.
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Here’s the relevant language from the Federal Register notice as it pertains to the 10% tariff and goods in transit.
Sec. 3
Implementation.
(a) Except as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional
ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.
Link to the notice: Federal Register :: Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits
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Like I said, it’s the same price from every negociant to every buyer regardless of where the buyer is located. The price is in Euros so currency fluctuations can matter quite a bit .
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Interesting - thanks Jeff!
You laugh but
From WDC
Pricing: Bordeaux futures pricing has consistently shown a cyclical, self-correcting pattern, and in line with that trend, many Chateaux are releasing their 2024 vintages at lower prices than in previous years. Lastly, all wines offered do not include the blanket 10% tariff imposed in April 2025. When the wines are shippable in fall of 2027, customers will have the option to pay any tariff in place at the time or to keep their wines stored in a temperature-controlled facility in France.
I saw this. I wonder why yours is slightly different, since it’s a fairly important detail:
“…or to keep their wines stored in a temperature-controlled facility free of charge in France.”
Left unsaid is how long you can keep it there.
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