Thanks for the article Steve. That 25% tariff from last year is still in place however, correct?
But my understanding is the existing 25% tariffs remain. Just no additional tariffs.
Well, new tariffs related to the digital service tax. The current ones still seem to be in effect. It means that champagne is still tariff-free.
That’s my understanding as well, which still is ridiculous.
I think so, just not any additional
So, a keel-hauling does not follow the electric chair.
Why stop a supposedly good idea from reaching its logical conclusion?
To flesh out the details, there are two wholly separate trade disputes here.
One is with the countries that are involved with the Airbus consortium. As a result of that dispute, the US has imposed a 25% tariff on a number of goods from a number of those countries. That is the tariff we have all been dealing with since October, which applies to (among others) French, German, and Spanish wines but not to Italian wines, and even within France, Germany and Spain it does not apply to wines over 14% ABV or sparkling wines or wines in larger bottles (3L and up, I believe, but I’m going from memory). That tariff comes up for periodic review at which it can be expanded to additional categories (like sparkling wine or wines over 14%) or increased in amount, or removed entirely and rotated onto other goods. So far, it has remained in place without change. The announcement in the OP has nothing to do with this tariff.
The other dispute is with France, and has to do with France’s proposed (or imposed, I can’t remember) “digital services tax.” That is the new tariff which has just been announced, and while sparkling wine was specifically under consideration, that tariff for the moment applies* only to goods other than wine.
- Its imposition has been suspended for six months to allow for negotiations, so it doesn’t “apply” to anything yet.