Deadline is January 6th to Push Back Against 100% Tariffs That Could Cause Fine Wine Prices to Skyrocket
Dear Zachys Customer:
The United States government is threatening to impose 100% Tariffs on all wines from the European Union – French, Italian, Spanish, Portuguese and German wines – including both still and sparkling, regardless of alcohol level. (for more information, see Why Is This Happening?, at the bottom of this email)
If these tariffs go through, the price of wines to both retailers and wine lovers could skyrocket. We need your help.
Please take a few minutes to send a comment to the U.S. Trade Representative and contact your U.S. Congressperson and U.S. Senator and tell them NOT TO SUPPORT THESE DESTRUCTIVE and ANTI-CONSUMER TARIFFS.
Write to the U.S. Trade Representative
Below in italics is wording for a letter that you can copy and paste to write to the U.S. Trade Representative at the website they have created to take comments on proposed tariffs. You may also write your own.
Copy the italicized wording below, then click on the link to Email the U.S. Trade Representative, then paste the wording into the “Comment (Required)” box provided. You will be asked for your first and last name, but may remain anonymous by skipping these fields.
Write to the U.S. Trade Representative
The Honorable Robert Lighthizer
U.S. Trade Representative
Executive Office of the President
600 17th Street, NW
Washington, DC 20006
Re: Opposition to Tariffs on Imported Wine from the European Union
Dear Ambassador Lighthizer:
I am writing as a customer and consumer of imported and domestic wines that is concerned with the multiple rounds of tariffs that are being imposed and considered on wine from the European Union (“EU”). I strongly urge you not to punish me, or my fellow wine lovers, or the hardworking wine retailers for problems we didn’t cause. It’s unfair at face value. You should punish those responsible. Punishing Airbus and their suppliers and French digital services companies would be much more effective, as well as fair.
Beginning on October 18, 2019, the U.S. Government imposed a 25-percent tariff on certain French wine as part of retaliatory tariffs against the European Union (“EU”) after the World Trade Organization authorized retaliation for the EU’s failure to comply with WTO rulings on subsidies provided to Airbus. All the while Airbus itself was only issued a 10% tariff. I understand that a 100-percent tariff is proposed on French sparkling wine (consisting mostly of champagne) and that this tariff is part of the Section 301 duties imposed on imports from France as a result of the country’s Digital Services Tax (“DST”). Finally, on December 10, 2019, USTR proposed imposing tariffs of up to 100 percent on all wines from the EU.
Because of these import tariffs, the prices will go up dramatically for wine. Margins on wine are extremely small, and the sale of wine is highly regulated, with virtually every state imposing a three-tier distribution system with markups occurring at each tier of distribution. Thus, a 25-percent tariff on wine imports will likely result in a 50-percent increase and a 100-percent tariff on wine imports will likely result in a 150-percent increase in prices for a consumer like me.
There is no substitute for imports of wine from the EU. Wines from the EU are different from domestic wines and wines from other countries as a matter of consumer taste. In addition, because it takes many years to plant new grape vineyards and allow the vineyards to produce mature fruit that can be harvested to make wine, it will take at least a decade before the U.S. domestic wine industry could ever be in a position to begin replacing wine imports from the EU.
As a wine consumer, I do not understand why individual consumers like me should suffer because of a dispute involving Boeing and Airbus or France’s digital services tax. Retaliatory tariffs on these matters should target Airbus and their suppliers who benefitted from the subsidies or French digital services companies.
Write to Congress
Below are two links that will allow you to email your U.S. House Representative and your U.S. Senator. Each link takes to you to a page where it will take just 30 seconds to send a letter to your representatives (which will be routed automatically based on your address).
Write to Your U.S. Representative
Thank you for taking the time to write your representatives and push back against what would be skyrocketing prices if these 100% tariffs go into effect.
Sincerely,
Jeff Zacharia
President
Why Is This Happening?
The US government is retaliating for illegal subsidies the EU gave to Airbus (aircraft maker competing with Boeing, a US company) in 2011 that has and is harming the US economy by making Airbus aircraft significantly cheaper to produce and with a lower price tag than other competitors.
The EU has refused to comply with the World Trade Organizations’ 2016 request to remedy $17 Billion in subsidies and has instead added $5 Billion more.
The EU’s requests to appeal the remedy ruling was rejected by the WTO in May 2018 and all tariffs the U.S. government has imposed (25% on many EU wines) have been approved by the WTO.