The European wine industry has recently found itself in the center of the escalating trade dispute with the US. US president Donald Trump last week threatened a duty of 200 % of wine, champagne and other spirits of the European Union (EU), If Brussels does not cancel the plans to introduce retaliatory customs on some US products since April 1. TASR informs this on the basis of AP report.
Cutures will hit the winemakers in France, Italy and Spain. Especially for smaller wine companies, huge costs can be unmanageable. The EU announced, among other things, the introduction of a duty of 50 % and American whiskey From April 1, in response to the Duties of Trump’s administration to steel and aluminum.
Gabriel Picard, headed by the French Federation of Wine and Spanches, said that 200 % duties would be a disaster for this industry in France, as its export to the US is worth € 4 billion. Nevertheless, he understands why European leaders responded to Trump’s duties to steel and aluminum from the EU. “We agree that Mr. Trump creates and likes fights forces. We must adapt to it,” said.
Winemakers in Italy hope that negotiators in Brussels and Washington can still prevent the escalation of the trade dispute. The US is the largest Italian wine market, while its export value has been tripled in 20 years. Last year, exports increased by almost 7 % to more than 2 billion euros according to the main Italian farm lobby Coldoretti. Italian winemakers are suppliers especially top restaurants in the US and it is difficult to find a replacement for this market after the duties move their wine to a “unimaginable” level.
Last year, Spain was the fourth largest wine exporter to the US in terms of sales and the seventh largest according to the volume. The export of Spanish wine to the US grew by 7 %last year. The wine industry accounts for about 2 % of the country’s total economic performance, the trading group of winemakers said.
Especially manufacturers of sparkling wine Cava would hit the American duties hard. The US is the largest market for Spanish sparkling wine, which, like the champagne designation of origin, which means it can only be produced in Spain.
