Current United States President and vineyard owner Donald J. Trump is set to impose hefty tariffs on roughly $7.5 billion worth of European agricultural and industrial products, including French, Italian, and German wines.
This follows the World Trade Organizationโs recent favorable ruling to the U.S. in a 15-year dispute over aircraft corporation Airbusโ illegal subsidies. The Trump administration plans to impose 10% tariffs on European aircrafts, but products such as food and drink will be subject to tariffs up to 25%. Pending final approval by The World Trade Organization, these changes could take place as soon as Oct. 18.
In addition to wine, the tariff will also affect items such as leather handbags, Irish and Scotch whiskey, and Italian cheeses.ย Despite the fact that this is an aviation dispute, the disproportionate focus on EUโs wine and spirits has leaders looking for ways to deescalate further trade tensions.
Following questions about potential retaliation by the EU, Cecilia Malmstrรถm, EU Commissioner for Trade released a statement that said, โThe mutual imposition of countermeasures would only inflict damage on businesses and citizens on both sides of the Atlantic, and harm global trade and the broader aviation industry at a sensitive time.โ
President Trump has zeroed in on French wines in the past. During the signing of a safe third country agreement with Guatemala in July of this year, the president, in response to a question about retaliation against Franceโs move to tax U.S. tech companies with locations in France said, โDonโt do it, because if you do it, Iโm going to tax your wineโtariff, or taxโcall it whatever you want. So, yeah, weโre working on that right now.โ
โIโve always liked American wines better than French wines โ even though I donโt drink wine,โ he continued. โI just like the way they look, okay?โ
Eric Trump, Donald Trumpโs son, owns a winery in Virginia.
Laura Jaye Cramer is a freelance writer based in California and has written forย SF Weekly,ย GOOD, andย PAPER Magazine. Read more Laura Jaye Cramer on Sprudge Wine.