Trade: How Wine Became Subject of Trade War
Wine is becoming a subject of the escalating international trade war.
China has increased tariffs on American wine in three rounds within the past year, causing American wine prices to soar in China.
On the European front, American wines are charged high tariffs by France while French wine is charged lower tariffs. Both the U.S. and Europe have drawn up lists of goods that they’ll target with tariffs, and wine is on the American version.
This is the same war that involves plane-makers Boeing and Airbus.
As President Trump left the Trans-Pacific Partnership (TTP), it has increased access of the 11 remaining members to others’ markets, this includes Australia and Chile, which are bigger wine exporters than the U.S.
Meanwhile Canada is one of the largest importers of US wine. The U.S. ranked third as a provider of imports in 2017, behind France and Italy. The upgraded Nafta which will be a new deal known as USMCA may decrease tariff on certain American wines even further.
