US Senators Urge Biden To Get China’s Wine Tariffs Lifted
Three U.S. senators have asked the trade officials of the Biden administration to have China lift its tariffs on the country’s wine exports and eliminate, as well, duties on imported wine from European states.
In a letter on Tuesday, Senators Dianne Feinstein, Alex Padilla and Jeff Merkley told U.S. Trade representative Katherine Tai and Commerce Secretary Gina Raimondo to work towards eliminating “unnecessary and damaging” tariffs on imported and exported wines.
To recall, after the Trump administration levied some duties on Chinese imports, China responded with a 54% tariff on American wines in 2019.
According to the senators, the retaliatory move caused a 34% decline in wine exports to the Chinese market, which was among its top five wine export destinations in 2019.
The U.S. exported $16 million worth of bottled still wines to China last year, nearly 60% less than the previous year’s value of $37.5 million, data from the United Nations Comtrade Database showed.
“Vintners that were shipping pallets worth of wine are now only shipping cases, or none at all, as Chinese consumers turn to wine from other countries.”
“Vintners that were shipping pallets worth of wine are now only shipping cases, or none at all, as Chinese consumers turn to wine from other countries,” the legislators noted.
The U.S. was not the only country feeling the brunt of Beijing’s punishing tariffs. Australian wines almost dried up in China, down to A$12 million from A$325 million previously, after its imposition of up to 212% duties on the commodity.
Moreover, the past administration also placed a 25% tariff on wines coming from Europe, which is currently suspended for four months from March pending negotiations.
The senators said this led to an increase in the cost of wine distribution across the country, harming both American and European businesses, especially small wineries with limited capacities to supply the local market.
The senators feared that American wines might be subjected to new, damaging tariffs from the European Union unless the government first resolves the Boeing-Airbus dispute.
“Wineries in our states are already under siege by the pandemic, wildfires, and now drought. Many will not survive if they are also asked to indefinitely sustain a damaging trade war,” the senators said.
