US Wine Trade Alliance Warns of Potential 200% Tariff on European Alcohol Imports

The US Wine Trade Alliance (USWTA) has urged American businesses to halt imports of European alcohol due to the threat of a 200% tariff announced by Donald Trump. The USWTA issued a strong recommendation advising companies to stop shipments of wine, spirits, and beer from the European Union. This warning comes amid fears that these products could soon face heavy taxation. The Alliance believes the risk of tariffs is currently too high. This recommendation could effectively halt the market, following Trump's threat to impose high tariffs on French and European wines and spirits. This move is in response to the EU's planned tariffs on American products, including bourbon, set to begin on April 1.

The USWTA acknowledges the potential disruptions this could cause and emphasizes that the recommendation is not made lightly. They note that no official notice has been published in the Federal Register, the US government's official journal, and there is a possibility that either the US or the EU might reconsider their current retaliatory policies. The organization, representing the American wine industry in the fight against tariffs, fears that the US might respond immediately by imposing tariffs as early as April 2, using a rarely invoked trade law article.

The USWTA is actively working to secure exceptions for goods already in transit when the tariffs are enacted. However, they caution that there are currently no guarantees. The situation remains uncertain, and the Alliance is closely monitoring developments to protect the interests of the American wine industry.