Recently, the protracted Boeing Airbus subsidy dispute between the United States and the European Union has continued to escalate.
Alcohol products such as wine are affected by the United States once again expanding the scope of tariffs on some EU products.
As one of the important producing areas of European wine, relevant German practitioners expressed dissatisfaction with this and began to gradually shift the focus of the market.
In terms of alcohol tariffs, starting on the 12th, the United States will impose a 25% tariff on red wines produced in France and Germany with alcohol levels above 14%, according to a statement issued by the Office of the United States Trade Representative on December 30, 2020.
This is the first time that the United States has imposed tariffs on EU red wine with alcohol content above 14%.
The United States said that the move was aimed at punishing the European Union’s long-term subsidies to French Airbus.
In view of the abrupt announcement of the Trump administration two weeks ago, relevant EU operators called the tariff “unexpected” and warned that the tax increase would further suppress the brewing industry affected by the epidemic.
In response to the tax increase, German wineries have also made great adjustments to the U.S. market.
Some brands simply withdraw from the U.S. market, while others have changed the way they cooperate with American distributors.
In the face of the lost market share, German wineries hope to make up for it by expanding other markets, especially in Asia.