US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1201 Post by D@vid Bu3ker » January 22nd, 2020, 5:07 pm

Paying on the day is indeed CYA. Most customs brokers pay on day 8 of the 10 day window.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1202 Post by Kris Patten » January 22nd, 2020, 6:49 pm

We pay tariffs when can lands so it will be released in tiemly manner. Waiting can only risk incurring penalties.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1203 Post by Nola Palomar » January 23rd, 2020, 7:25 am

There are many separate and yet intertwined details that make these tariffs devastating and emotional.

1) At the port the importer takes 100% of the burden of paying these tariffs, not the wholesaler, not the retailer and not the consumer.

2) The importer must pass on to the wholesaler a price that still allows the importer to be profitable, otherwise, don't import the tariffed wines. I don't know about other importers, but my margin would not sustain a 25% tariff for long because I do not have my wine sold before it hits the US. The 100% margin is the moment of collapse.

3) In some States such as Ohio there is price fixing by the State, there is no capacity for the wholesaler to move the price around and absorb more of this debit than the law allows.

4) The theory of the middle man (which I am assuming is the importer, wholesaler and retailer combined)helping to absorb the assault by lowering their margin is a utopian idea. I have not hear from any of the folks I know saying they are gladly going to drop their sales margin or profits to absorb these tariffs.

5) The comments on store like Total Wine and others taking advantage of the consumer, I don't know, but if they are normally selling a wine at X and to replace that wine it will cost XX then it makes sense that you would need to bump up your prices to be able to stay afloat in this business. That money to repurchase has to come from somewhere right? Take gold for example. If the price of gold increases, it isn't just on the "new" gold you buy, it is the value of all the gold including what you have in your pocket.

6) There are so many of ITB folks here and the read complaints and speculations about people increasing prices to take advantage of these tariffs is IMHO insulting to those of us looking at losing our capacity to import and even exist.

7) The ad nauseum post I have made about markups / final prices [smileyvault-ban.gif] is in direct response to 6) above. I only want people to understand that this is having devastating effects for the WHOLE import, distribution, and wine sales industry.

8) I have tried to think of every possible way to mitigate and make solutions for "my imports". Any gourmet item included in the tariffs, will not be imported. My olive oil is on the water right now and I am in the process of reinvesting in my facility to do the bottling myself. If the 100% tariff goes into effect, that investment will be a waste of my capital. I will need to increase the price of my oil right now to pay for these additional expenses.

9) I come here because I appreciate the wealth of knowledge and information as well as a sense of community love, kindness, wit and humor. I am perfectly fine with people telling me I am missing a point or that my numbers are off...as long as they understand, all-I-do, is live this ordeal day in and day out. I know my margins and I know that Ohio is not the same as New York, Texas or California. It is not a matter of not being able to collect the wines I wanted to buy, it is a matter of my business, it is a matter of me being able to put my daughter through college, itis a matter of keeping my winery afloat and finding new supply chains for it, it is a matter of not having to sell my house and move away from all of the nooks and crannies of memories I have here. You cannot begin to imagine unless you are in this business, the enormous stress and anxiety this has and is creating in our personal lives as well as across our industry.

10) Now back to the Festivities of Berserker Day 11 and the "Jay debates and Tom refuses" to escape the stress!! flirtysmile [berserker.gif] [berserker.gif] flirtysmile
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1204 Post by Oliver McCrum » January 23rd, 2020, 8:35 am

Well said, Nola.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1205 Post by D@vid Bu3ker » January 23rd, 2020, 9:37 am

Well said Nola.

This issue is much more personal for those who make their living from wine than it is for those who just drink it.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1206 Post by Peter Kleban » January 23rd, 2020, 9:40 am

+1 on both points
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1207 Post by John Morris » January 23rd, 2020, 10:56 am

Nola Palomar wrote:
January 23rd, 2020, 7:25 am
4) The theory of the middle man (which I am assuming is the importer, wholesaler and retailer combined)helping to absorb the assault by lowering their margin is a utopian idea. I have not hear from any of the folks I know saying they are gladly going to drop their sales margin or profits to absorb these tariffs.
I received a flyer yesterday from Moore Brothers, an importer and retailer, saying there would be price increases of 5-15% on wines that have been subject to the October 25% tariff.

That's economically rational because if they passed the 25% through, their loss in sales might well exceed what they'd take in by raising retail prices by 25% to maintain their percentage markup. Their fixed costs -- rent, employees, trucks, warehouses -- aren't going up 25%, so they can take a lower percentage markup, cover their fixed costs and still make the same profit in dollars.
"But they told me there would be a hand basket."

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1208 Post by D@vid Bu3ker » January 23rd, 2020, 11:03 am

Different businesses have different challenges.

Of course Moore Brothers is already so darned expensive...
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1209 Post by Sarah Kirschbaum » January 23rd, 2020, 11:15 am

D@vid Bu3ker wrote:
January 23rd, 2020, 11:03 am
Different businesses have different challenges.

Of course Moore Brothers is already so darned expensive...
True they aren't usually the cheapest out there, but I am often willing to pay up for the unbeatable provenance. Every step in the chain is guaranteed temperature controlled. I can't tell you the number of times we bought wines both there and elsewhere (wanted more than MB had) and found the MB bottles to be consistently superior. We'll now always have an example of the "other" bottle first, with a new wine, to see if we sense any flaws before tasting the MB version.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1210 Post by Sarah Kirschbaum » January 23rd, 2020, 11:20 am

John Morris wrote:
January 23rd, 2020, 10:56 am
Nola Palomar wrote:
January 23rd, 2020, 7:25 am
4) The theory of the middle man (which I am assuming is the importer, wholesaler and retailer combined)helping to absorb the assault by lowering their margin is a utopian idea. I have not hear from any of the folks I know saying they are gladly going to drop their sales margin or profits to absorb these tariffs.
I received a flyer yesterday from Moore Brothers, an importer and retailer, saying there would be price increases of 5-15% on wines that have been subject to the October 25% tariff.

That's economically rational because if they passed the 25% through, their loss in sales might well exceed what they'd take in by raising retail prices by 25% to maintain their percentage markup. Their fixed costs -- rent, employees, trucks, warehouses -- aren't going up 25%, so they can take a lower percentage markup, cover their fixed costs and still make the same profit in dollars.
I heard through the grapevine that Moore Brothers made a huge push to bring in a ton of wine ahead of these latest threatened tariffs - something crazy like 30 containers (don't quote me on that) - so there will be a lot of wine subject to these new mark-ups above as a result of trying to get ahead of the potentially worse situation. Very respectable decision, I think.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1211 Post by John Morris » January 23rd, 2020, 11:30 am

The flyer said they have received a boatload of Elio Grasso Barolo ahead of schedule, which would be consistent with that.
"But they told me there would be a hand basket."

"I'm not slurring my words. I'm speaking cursive."

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1212 Post by Nola Palomar » January 23rd, 2020, 11:38 am

[winner.gif] [winner.gif] [winner.gif] Hooray for Moore Brothers!! [winner.gif] [winner.gif] [winner.gif]

Anyone who is able to mitigate and work around these tariffs should be applauded!
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1213 Post by Nola Palomar » January 24th, 2020, 5:07 pm

And so you hope that your Customs Broker is aware of all of these tariffs, what is included and what is not. My new 2020 olive oil is on its way and due to arrive in NY on Sunday. I have already done my prior notice, etc and I receive an email from my Customs Broker telling me that I will have a 25% tariff to pay on the Olive Oil.

SMDH deadhorse [head-bang.gif] [head-bang.gif] " No, I will not, have a 25% tariff correct your HTS codes for my shipment now please."
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1214 Post by D@vid Bu3ker » January 24th, 2020, 5:26 pm

Nola Palomar wrote:
January 24th, 2020, 5:07 pm
And so you hope that your Customs Broker is aware of all of these tariffs, what is included and what is not. My new 2020 olive oil is on its way and due to arrive in NY on Sunday. I have already done my prior notice, etc and I receive an email from my Customs Broker telling me that I will have a 25% tariff to pay on the Olive Oil.

SMDH deadhorse [head-bang.gif] [head-bang.gif] " No, I will not, have a 25% tariff correct your HTS codes for my shipment now please."
Are they trying to use 1509.10.20?
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1215 Post by Nola Palomar » January 24th, 2020, 5:32 pm

D@vid Bu3ker wrote:
January 24th, 2020, 5:26 pm
Nola Palomar wrote:
January 24th, 2020, 5:07 pm
And so you hope that your Customs Broker is aware of all of these tariffs, what is included and what is not. My new 2020 olive oil is on its way and due to arrive in NY on Sunday. I have already done my prior notice, etc and I receive an email from my Customs Broker telling me that I will have a 25% tariff to pay on the Olive Oil.

SMDH deadhorse [head-bang.gif] [head-bang.gif] " No, I will not, have a 25% tariff correct your HTS codes for my shipment now please."
Are they trying to use 1509.10.20?
Yep, it is > than 18K when the volume is 1,000 Liters. So it is 1509.10.40 and NOT subject to the tariff.

Yes it is only one digit, but she had my commercial invoice in front of her which had the correct HTS code as well as the volume and my prior notice all in front of her then she emailed me telling me my shipment was going to cost me....
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1216 Post by D@vid Bu3ker » January 24th, 2020, 5:46 pm

Brokers, even reputable ones make egregious, stupid mistakes. I could spend all night listing their screw ups. Good for you being vigilant.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1217 Post by Dan Kravitz » January 24th, 2020, 6:31 pm

I don't know much about Moore Brothers, but 30 containers is 25 - 35,000 cases of wine.
That is a lot for a company that apparently has three stores of only artisanal wines.
Just went on their website for the first time and you cannot access it without choosing which store you wish to shop at.
Sorry that I won't ever be able to get on their website.
Their boatload of Elio Grasso is tariff-exempt.
Aa boatload (assuming they mean a container not a container ship) of Elio Grasso would represent at least 10% of Grasso's total annual production; 20% if it's a full 40 foot container.
I didn't know Elio Grasso sold that much to a single American customer.
I still don't.
In these complicated times, it might be advisable to take advertisements with more than a single grain of salt.

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1218 Post by David_K » January 24th, 2020, 6:59 pm

Dan, I think John was using the colloquial "boatload" - as in a lot - and not that they literally got a container of nothing except Elio Grasso.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1219 Post by Sarah Kirschbaum » January 24th, 2020, 7:09 pm

Dan Kravitz wrote:
January 24th, 2020, 6:31 pm
I don't know much about Moore Brothers, but 30 containers is 25 - 35,000 cases of wine.
That is a lot for a company that apparently has three stores of only artisanal wines.
Just went on their website for the first time and you cannot access it without choosing which store you wish to shop at.
Sorry that I won't ever be able to get on their website.
Their boatload of Elio Grasso is tariff-exempt.
Aa boatload (assuming they mean a container not a container ship) of Elio Grasso would represent at least 10% of Grasso's total annual production; 20% if it's a full 40 foot container.
I didn't know Elio Grasso sold that much to a single American customer.
I still don't.
In these complicated times, it might be advisable to take advertisements with more than a single grain of salt.

Dan Kravitz
EDITED AS I WAS WRONG ABOUT A KEY POINT INITIALLY:

I did say "don't quote me on that" when I dropped the 30 containers number. I'm not in the business, and I have no idea what that figure means in case terms (or didn't until you just wrote above), so couldn't judge what kind of an exaggeration it might be when I heard it.

However, after reading your post, Dan, I asked my husband, from whom I heard that figure, and it turns out Moore Brothers DID send a blast email and used the figure 33 contains or "more than 35,000 cases" in temp controlled containers. So you are correct on the numbers.

"Boatload" could also easily have been a figure of speech, whether of MB's choosing or John's, I don't know - I've certainly used that term to mean, simply, a lot. I do know it to be true that MB made an effort to bring in a lot ahead of possible tariffs, including getting permission to bring in their entire allocation of Grasso 4 months before the official release date (they got official permission).

I appreciate your point, however, that now might not be a time for any exaggeration or figures of speech.

With respect, though, I don't see any impossibility with getting on their website. Choosing the store doesn't obligate you to buy anything. I believe NJ is the biggest (don't quote me on that, either - I could be wrong), so why not just enter that one if your interest is to look around a bit? You can look at the other two afterwards if you want. If you're interested in seeing everything they have, an iterative process might be a little irritating, but the idea that you'll never be able to get on their website just doesn't seem to be the case. And I can see where they are coming from - the inventory from store to store is a little different for various reasons. They might understandably think a store-specific online experience is best, though it clearly bothers some people.
Last edited by Sarah Kirschbaum on January 24th, 2020, 7:17 pm, edited 1 time in total.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1220 Post by Tom G l a s g o w » January 24th, 2020, 7:15 pm

They don’t ship outside the state for NJ or a Delaware, so not that motivated to display wines most people can’t buy and ship.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1221 Post by D@vid Bu3ker » January 24th, 2020, 7:18 pm

Just did a little browsing of the NJ store inventory. Meh.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1222 Post by DaveP » February 5th, 2020, 10:54 pm

If I read correctly, the 25% tariff stands until the $7.5B is paid off. Therefore $30B worth of tariffed goods must be imported.
Just curious if there is any sort of "tote-board" online that shows how much of this $7.5B has been paid thus far?

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1223 Post by D@vid Bu3ker » February 6th, 2020, 3:42 am

Incorrect.

It’s an annual number, and the $7.5B is not tallied each year. It was just a way to scope the tariff.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1224 Post by Nola Palomar » February 6th, 2020, 3:51 am

9 days and ticking until we know the next round of products on the carousel of goods. The uncertainty is like waiting for a prison sentence to be read.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1225 Post by Michel Abood » February 6th, 2020, 11:32 am

Nola Palomar wrote:
February 6th, 2020, 3:51 am
9 days and ticking until we know the next round of products on the carousel of goods. The uncertainty is like waiting for a prison sentence to be read.
Who needs sleep? At least I'm in France so I'm eating/drinking my anxiety.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1226 Post by Andrew Kotowski » February 6th, 2020, 11:55 am

Michel Abood wrote:
February 6th, 2020, 11:32 am
Nola Palomar wrote:
February 6th, 2020, 3:51 am
9 days and ticking until we know the next round of products on the carousel of goods. The uncertainty is like waiting for a prison sentence to be read.
Who needs sleep? At least I'm in France so I'm eating/drinking my anxiety.
That explains the tired look in your avatar. Ambien is a hell of a drug.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1227 Post by Michel Abood » February 6th, 2020, 1:53 pm

Andrew Kotowski wrote:
February 6th, 2020, 11:55 am
Michel Abood wrote:
February 6th, 2020, 11:32 am
Nola Palomar wrote:
February 6th, 2020, 3:51 am
9 days and ticking until we know the next round of products on the carousel of goods. The uncertainty is like waiting for a prison sentence to be read.
Who needs sleep? At least I'm in France so I'm eating/drinking my anxiety.
That explains the tired look in your avatar. Ambien is a hell of a drug.
That's a food coma after our day last week. Who needs Ambien when I've got great wines and raw milk cheeses and three hour lunches with customers and friends?
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1228 Post by Richard T r i m p i » February 6th, 2020, 4:08 pm

D@vid Bu3ker wrote:
January 24th, 2020, 7:18 pm
Just did a little browsing of the NJ store inventory. Meh.
I've been a customer of Moore Brothers since they opened their Pennsauken, NJ store. First store doing temperature control that I'd ever seen. if you're looking for "labels"....forget it. They're loyal to a specific cadre of long time favorite producers (almost all artisanal family producers, many multi-generational). They specialize in hand picked, non-spoofed, affordable, food friendly wines for everyday and regular enjoyment. You won't find the creme-de-la-creme. They've been a solid, helpful, service oriented conscientious retailer for 20+ years.

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1229 Post by Tom G l a s g o w » February 6th, 2020, 4:36 pm

Richard T r i m p i wrote:
February 6th, 2020, 4:08 pm
D@vid Bu3ker wrote:
January 24th, 2020, 7:18 pm
Just did a little browsing of the NJ store inventory. Meh.
I've been a customer of Moore Brothers since they opened their Pennsauken, NJ store. First store doing temperature control that I'd ever seen. if you're looking for "labels"....forget it. They're loyal to a specific cadre of long time favorite producers (almost all artisanal family producers, many multi-generational). They specialize in hand picked, non-spoofed, affordable, food friendly wines for everyday and regular enjoyment. You won't find the creme-de-la-creme. They've been a solid, helpful, service oriented conscientious retailer for 20+ years.

RT
Agreed, totally miss it.

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1230 Post by A Songeur » February 8th, 2020, 1:40 am

Ah ah I read somewhere that Trump put 25% duty on Spanish, French and German wines but nothing on Italian wines. Italian wines in EU have increased by over 12% since then... So, US still moving the market... at least partially...
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1231 Post by Nola Palomar » February 8th, 2020, 5:08 am

A Songeur wrote:
February 8th, 2020, 1:40 am
Ah ah I read somewhere that Trump put 25% duty on Spanish, French and German wines but nothing on Italian wines. Italian wines in EU have increased by over 12% since then... So, US still moving the market... at least partially...
Sorry, I’m unsure of your correlation, how US tariffs increase Italian wines in the EU.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1232 Post by D@vid Bu3ker » February 8th, 2020, 5:15 am

I think he means that more Italians are coming to the US, but I have not seen any facts to back that up.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1233 Post by A Songeur » February 8th, 2020, 6:24 am

I just reported what the media said. Do not forget, prices are determined/chosen by merchants and producers.
They apparently increased prices....
Then customers buy or not... You are free to draw your own conclusions (including the media got it wrong... your choice) and they did not mention anything about volumes....
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1234 Post by Markus S » February 8th, 2020, 7:26 am

A Songeur wrote:
February 8th, 2020, 6:24 am
I just reported what the media said. Do not forget, prices are determined/chosen by merchants and producers.
They apparently increased prices....
Then customers buy or not... You are free to draw your own conclusions (including the media got it wrong... your choice) and they did not mention anything about volumes....
So true. Businesses tend to raise their prices to meet the tariff as they see extra dollars on their bottom line to do so. Why waste a perfectly good chance to pad the profits?
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1235 Post by D@vid Bu3ker » February 8th, 2020, 7:28 am

A Songeur wrote:
February 8th, 2020, 6:24 am
I just reported what the media said. Do not forget, prices are determined/chosen by merchants and producers.
They apparently increased prices....
Then customers buy or not... You are free to draw your own conclusions (including the media got it wrong... your choice) and they did not mention anything about volumes....
Was looking for a citation. Your original post did not explain your point well at all. Still not clear.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1236 Post by AndrewH » February 8th, 2020, 9:16 am

Nola Palomar wrote:
February 8th, 2020, 5:08 am
A Songeur wrote:
February 8th, 2020, 1:40 am
Ah ah I read somewhere that Trump put 25% duty on Spanish, French and German wines but nothing on Italian wines. Italian wines in EU have increased by over 12% since then... So, US still moving the market... at least partially...
Sorry, I’m unsure of your correlation, how US tariffs increase Italian wines in the EU.
Indeed. Effect should be the other way. Tariffs in US reduce exports from EU to US, raising supply in EU relative to demand. That should depress prices in EU for tariffed wines. Italian wines to compete should be expected to lower their prices, not raise them.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1237 Post by Nola Palomar » February 8th, 2020, 9:19 am

AndrewH wrote:
February 8th, 2020, 9:16 am
Nola Palomar wrote:
February 8th, 2020, 5:08 am
A Songeur wrote:
February 8th, 2020, 1:40 am
Ah ah I read somewhere that Trump put 25% duty on Spanish, French and German wines but nothing on Italian wines. Italian wines in EU have increased by over 12% since then... So, US still moving the market... at least partially...
Sorry, I’m unsure of your correlation, how US tariffs increase Italian wines in the EU.
Indeed. Effect should be the other way. Tariffs in US reduce exports from EU to US, raising supply in EU relative to demand. That should depress prices in EU for tariffed wines. Italian wines to compete should be expected to lower their prices, not raise them.
I could definitely see how it would increase Italian wine imports to the US, but not the EU.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1238 Post by AndrewH » February 8th, 2020, 9:24 am

Nola Palomar wrote:
February 8th, 2020, 9:19 am
AndrewH wrote:
February 8th, 2020, 9:16 am
Nola Palomar wrote:
February 8th, 2020, 5:08 am


Sorry, I’m unsure of your correlation, how US tariffs increase Italian wines in the EU.
Indeed. Effect should be the other way. Tariffs in US reduce exports from EU to US, raising supply in EU relative to demand. That should depress prices in EU for tariffed wines. Italian wines to compete should be expected to lower their prices, not raise them.
I could definitely see how it would increase Italian wine imports to the US, but not the EU.
Yes, that would also be a sensible response, as buyers in the US should tend to shift towards the relatively less expensive Italian wines.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1239 Post by CJ Beazley » February 8th, 2020, 1:43 pm

It's C(raig)

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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1240 Post by ben.c » February 8th, 2020, 3:15 pm

In regards to prearrivals, has anyone (consumer side) personally had to pay any tariffs retroactively?

I see some sites (such as winecellerage) are charging it upfront and others have a disclaimer saying you’ll be responsible for it when the wine actually hit US docks. I know the retailers/importers have taken most of the hit so far. But I haven’t heard of consumers being charged the tariffs.

edited to emphasize prearrivals
Last edited by ben.c on February 8th, 2020, 9:03 pm, edited 2 times in total.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1241 Post by D@vid Bu3ker » February 8th, 2020, 4:15 pm

The retailer in my tasting group told us this week that importers and distributors he deals with are now passing along the tariffs. He has had to raise his prices to reflect his increased costs. So his customers are now paying.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1242 Post by Nola Palomar » February 9th, 2020, 6:54 am

Just doing my part to inform folks that this is not over.
https://www.daytondailynews.com/news/lo ... MV1Ro3z5H/
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1243 Post by A Songeur » February 9th, 2020, 10:08 am

To clarify my understanding on this information reported in the media:
Wines from Spain, France and Germany were hit by a 25% duty in the US while Italian wines were not.
Consequently, US wine importers may have decreased their imports of Spanish, French and German wines while asking for more Italian wines (they need to make a living and sell wines). US customers also noted or guessed that Italian wines had not increased as much in price.
On the Italian producers side, they understood the drive for US increased demand and (either because they could not fully serve it or just wanted their share of competitive advantage) did increase their prices across the board (netback to their front door) and rebalanced their allocation between countries to take into account increased US demand (and maybe decrease, slower increase or stagnation elsewhere due to increased prices).

Of course my reasoning assumes the media information is correct. I don't understand why you seem to
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1244 Post by Nola Palomar » February 9th, 2020, 10:19 am

A Songeur wrote:
February 9th, 2020, 10:08 am
To clarify my understanding on this information reported in the media:
Wines from Spain, France and Germany were hit by a 25% duty in the US while Italian wines were not.
Consequently, US wine importers may have decreased their imports of Spanish, French and German wines while asking for more Italian wines (they need to make a living and sell wines). US customers also noted or guessed that Italian wines had not increased as much in price.
On the Italian producers side, they understood the drive for US increased demand and (either because they could not fully serve it or just wanted their share of competitive advantage) did increase their prices across the board (netback to their front door) and rebalanced their allocation between countries to take into account increased US demand (and maybe decrease, slower increase or stagnation elsewhere due to increased prices).

Of course my reasoning assumes the media information is correct. I don't understand why you seem to
Good for them, I hope they are not listed in the new round coming on the 15th.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1245 Post by D@vid Bu3ker » February 9th, 2020, 10:23 am

I think (based on discussions with my retailer friends) that some higher profile Italian wines have seen increases, but it not across the board.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1246 Post by Mark Golodetz » February 9th, 2020, 11:21 am

Retailer friends tell me that old stocks are being exhausted just about now, and having waited as long as possible, they are now being forced to buy new tariff affected new wines. Wholesalers/importers have already bought.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1247 Post by Steve Gautier » February 10th, 2020, 5:22 am

Here is another graph from AAWE
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1248 Post by D@vid Bu3ker » February 10th, 2020, 5:25 am

I bet Italy declined due to common shipments with tariffed French & Spanish wines.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1249 Post by Nola Palomar » February 10th, 2020, 7:29 am

D@vid Bu3ker wrote:
February 10th, 2020, 5:25 am
I bet Italy declined due to common shipments with tariffed French & Spanish wines.
And knowing that the ball could drop at any moment and without a “Goods on the Water” provision, it does not make sense to ship.
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Re: US 25% tariff on European wines; 100% "digital" tariff on French products called off for the moment

#1250 Post by D@vid Bu3ker » February 10th, 2020, 7:50 am

Excellent point.
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