Tariffs on Wine, Food from Europe to Stay for Now, U.S. Says
February 12 2021 - 1:50PM
Dow Jones News
By Yuka Hayashi
WASHINGTON -- The Biden administration says it won't be ending
tariffs on imported European wine, cheese and other food imports
any time soon -- to the dismay of industry groups who say the
levies are hurting U.S. restaurants and consumers.
The Office of the U.S. Trade Representative said Friday it was
unnecessary for now to suspend the levies, which were imposed by
the Trump administration as part of a longstanding dispute with the
European Union over commercial aircraft subsidies.
In a regulatory filing, the USTR said it would "continue to
consider the action taken in the investigation," referring to a
17-year-old dispute over how governments subsidize Boeing Co. and
Airbus SE. The Biden administration has said it is reviewing the
tariffs and other major trade policy actions adopted by the
previous administration.
Under the Trump administration, the dispute turned into a tariff
fight that snared food and beverage industries unrelated to
aircraft manufacturing. Washington imposed tariffs on $7.5 billion
worth of European wine and food items like cheese and olives in
late 2019.
The European Union hit back with levies on U.S. whiskey, nuts
and tobacco valued around $4.5 billion. The U.S. stepped up the
sanctions on Dec. 31 with additional tariffs, placing virtually all
wine imports from France and Germany under its 25% tariff.
The decision to maintain the status quo came despite intense
lobbying by the U.S. restaurant and beverage industries that are
already reeling from the impact of the Covid-19 pandemic.
"These food and wine tariffs are impacting one of the most
vulnerable sections of the economy at the worst point in
generations," said Ben Aneff, president of the U.S. Wine Trade
Alliance, a group representing wine importers.
Wine represents the largest source of profit for many
restaurants, he said, and more than 80% of the burden of the
tariffs are absorbed by the U.S. businesses and consumers, rather
than by European wine producers.
A group of celebrity chefs have sent a letter to congressional
leaders asking to end what they call "restaurant tariffs," with
signatures from 2,300 restaurant owners across the country.
The USTR said in Friday's filing that the affected U.S. industry
has been consulted before the latest decision, which came as a
result of a previously scheduled periodic review of the measure.
Representatives of the USTR and the EU office in Washington didn't
respond to requests for comment.
European officials have called on the Biden administration in
recent weeks to help resolve the aircraft dispute but significant
differences have remained between the two sides.
Write to Yuka Hayashi at yuka.hayashi@wsj.com
(END) Dow Jones Newswires
February 12, 2021 13:35 ET (18:35 GMT)
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