China To Add 15% Tariff on U.S. Wine
As discussed in our previous post, Steel and Aluminum Tariffs Could Impact U.S. Alcohol Beverage Producers, retaliatory tariffs presented a risk to goods unrelated to those subject to U.S. tariffs.
Now, China has indicated it will retaliate against U.S. tariffs on $60 billion of Chinese goods by imposing an additional 15% import tariff on U.S. wine imported to China, among other measures. China will also target other iconic U.S. agricultural products, including pork, fruit and nuts. China is among the largest U.S. wine export markets, importing $79 million of California wine alone last year according to the Wine Institute.
At least for now though, the much larger U.S. wine export markets of the European Union and Canada — accounting for nearly $1 billion in California wine exports combined — have been excluded from new U.S. tariffs. Those larger markets have not enacted any retaliatory tariffs at this point.