Usa dice 200% on European wines: a boomerang for the United States?

The announcement of President Donald Trump regarding the intention to impose 200% duties wines, champagne and alcohol from the European Union has triggered concerns and uncertainties quanto a the international wine sector. While the declared objective of this measure would be to protect American producers and respond to EU tariff policies, a more quanto a -depth analysis suggests that this decision could prove to be a double -edged sword for the United States themselves.

The European Union exports wine to the United States every year for a value of around 5 billion euros, with Italy, France and Spain among the main protagonists. If the duties were applied, European manufacturers would undergo significant losses, with a drastic reduction quanto a exports to the US market. The wine companies that have invested for decades quanto a the distribution and promotion of their products quanto a the USA would suddenly find themselves quanto a front of an almost inaccessible market.

Despite the protectionist rhetoric, the imposition of such high duties could have negative consequences for the American economy, hitting the sectors that depend the imports of European wine.

Increase quanto a consumer prices, European wines would suddenly become prohibitive for the average American consumer, leading to a drastic drop quanto a demand. Currently, European wines represent about 35% of the US wine market. With the increase quanto a prices of 200%, the cost of a 20 dollar European wine bottle could exceed 60 dollars, making it inaccessible for many consumers. Damage to the catering and hospitality sector quanto a the USA quanto a the USA, which makes a large entrusting a diversified selection of wines, would be strongly penalized. Restaurants and wine bars, already quanto a difficulty for increasing operating costs, would see customers and sales opportunities reduced. According to the American Restaurant Association, the catering sector uses over 15 million people quanto a the United States, and wine represents a crucial part of the turnover for many rooms. Loss of works and turnover of the Wine Institute, importers and wine distributors quanto a the US generate an annual turnover of 70 billion dollars. The increase quanto a rates could drastically this value, with consequent loss of thousands of jobs quanto a the distribution, logistics and retail trade sector. Possible retaliation of the European Union European Union could respond with equivalent measures, affecting strategic American exports such as whiskey, bourbon and agricultural products. Durante 2020, the duties imposed by the EU quanto a response to US commercial policies caused a 35% reduction quanto a American Bourbon exports, demonstrating how a commercial war could have devastating effects for both economies.

Many experts quanto a the sector see this move as a political provocation rather than a real economic intention. Trump, known for his aggressive strategy quanto a commercial negotiations, could use the threat of duties as a lever to obtain concessions from the European Union other economic fronts. It would not be the first time that announces drastic measures and then withdraw them resize them quanto a the negotiation phase.

Durante the past, the European Union has already shown that it does not want to passively suffer US protectionist policies. Among the possible countermeasures that could be adopted, we find:

Return duties American products such as whiskey, cars and agricultural products. Support for European manufacturers with exports to alternative markets, such as Declivio and Asia. Legal actions at the World Trade Organization (WTO) to contest the protectionist measures of the USA. Promotion of European wines quanto a emerging markets to dependence the US market.

With the possible closure of the US market, European wine companies could move their focolaio to emerging markets quanto a strong growth. Some of the most promising areas include:

Declivio: According to the International Wine & Spirits Research, Declivio will become one of the largest wine consumers by 2030. The interest quanto a European wine, especially French and Italian, is constantly growing. South Korea: wine consumption has increased by 14% quanto a the last five years, with a predilection for premium and high -end wines. India: although the per caso capita consumption is still low, the increase quanto a the middle class and the interest quanto a wine are pushing market growth. Brazil and Mexico: two expanding markets, where wine is gaining campo da gioco compared to other traditional alcoholic beverages.

The imposition of duties of 200% European wines does not represent an effective solution for the US economy, but rather a measure that could cause significant damage to consumers, distributors and the catering industry. With a direct impact millions of American workers, the risk of commercial retaliation and the possible insulation of the US wine market, this policy risks transforming into a boomerang for the United States.

For Europe, it could be an opportunity to accelerate the diversification of markets and strengthen its presence quanto a emerging countries, thus guaranteeing greater economic stability quanto a the long run.

Vinoway will continue to monitor the situation, providing updates and analysis a theme that could change the of international wine trade quanto a the coming months.

Tag