SIGH OF RELIEF: U.S. PRODUCERS ESCAPED 4TH PUNITIVE CHINA TARIFFS TODAY
By Siulan Law Mathews DipWSET
American wine producers have escaped the 4th round of punitive tariffs at 10% on their wine exports to China today, as the trade war between USA and China has been paused for now.
The Chinese government announced on 5 December that they will halt the punitive tariffs on American imports scheduled to become effective on 15 December.
The list of targeted products worth some USD75billion, including cars, auto parts, agricultural and other products.
Wines and spirits were on the list and the new 10% punitive tariffs was scheduled to become effective early morning yesterday.
Among these items are wine (includes bottled, bulk and sparkling), beer, gin, agave and other distilled spirits.
The new tariffs, if materialised, would have brought total tax bill for imported American wines in China to more than 118%.
Despite the relief, American wine producers are still facing 93% total tax bill when exporting to China.
This would have been the fourth round of tariffs increase faced by American wine producers in China, the last round kicked-in on 1 June when China added 15% tariff on US wine imports.
That was on top of a previous 15% tariff increase implemented in April 2018 and another 10% increase in September 2018.
The pro-longed trade war has already taken its toll on American wine exports to China. The trade declined by a whopping 25% by value to USD59 million last year.
(the writer can be contacted at: firstname.lastname@example.org)
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