US President Trump has promised to take measures with regard to the French wines which are allowed into the country without the imposition of any tariffs while duties are imposed on US wines in France.
In an interview with CNBC on Monday after his visit to Normandy, Trump complained of the lack of tariffs on French wines. He called it unfair and stated that wine manufacturers had repeatedly requested that something be done about promoting export of local wines.
He lamented about the changing tariffs on wines in the France in the past and said that it was an action which required change. He said it was too easy to for foreign wineries to bring wine into the USA.
After the commemoration of the 75th anniversary of D-Day in Normandy he met with President Emmanuel Macron, where it is unclear whether the leaders discussed the tariffs. Neither made a mention of it to the reporters post meeting. Trump exalted his relations with France by telling Macron that it was an ‘outstanding’ experience.
The tariff charged by the US on a 750 ml bottle of imported wine is 5 cents and only 14 cents on sparkling wines according to statistics by the Wine Institute. This Institute is a Californian advocacy group of winemakers. EU tariffs on imported wines are between 11 and 29 cents per bottle as per them.
The website for the group states that high rates of tariff on these are a great trade barrier to US wine exports. The US is the largest client for winemakers in the EU with an estimated third of the total wine production bring bought from the bloc in 2017. In sharp contrast, the US constitutes only 16% of the wine imports in EU, after Chile and Australia according to Eurostat.
Potential measures of the US against French wines will target the EU trade bloc as they indulge in common trade agreements. The EU exported 11.3 billion euros worth of wine in 2017 to countries such as the US.
EU member states have also imported 12.9 billion worth of wines in 2017, with wines outside of EU constituting only 20% of this statistic. Out of this only 16% is contributed by the US. Trump claims to not drink alcohol, but says he has a history with wine. As recently as 2011, Trump and his son Eric, who now runs the operation as its president, purchased a winery in Charlottesville, Va. in a post foreclosure auction sale.
