US To Expand Retaliatory Tariff List

The USTR announced yesterday that they plan to adjust the list of items that will be subject to retaliatory tariffs under the WTO Airbus decision. We did not expect this turn of events, which has been explained by a review of the proportions of retaliatory tariffs placed by the EU on USA products and the departure of the UK from the EU. The full notice and list will be published shortly in the Federal Register, but we expect the list to follow the USTR outline with beverage alcohol products listed below:

  1. The following products of France and Germany have been added to the action, and included in Part 18, which has been inserted in the descriptive list in Section 2.

HTS Subheading Product Description

2204.21.20 Effervescent grape wine, in containers holding 2 liters or less

2204.21.30 Tokay wine (not carbonated) not over 14% alcohol, in containers not over 2 liters

2204.21.60 “Marsala” wine, over 14% vol. alcohol, in containers holding 2 liters or less

2204.21.80 Grape wine, other than “Marsala”, not sparkling or effervescent, over 14% vol. alcohol, in containers holding 2 liters or less

2204.22.20 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume <=14% in containers holding over 2liters but not over 4liters

2204.22.40 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume >14% in containers holding over 2 liters but not over 4 liters

2204.22.60 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume <=14% in containers holding over 4 liters but not over 10 liters

2204.22.80 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume >14% in containers holding over 4 liters but not over 10 liters

2204.29.61 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume <=14% in containers holding >10 liters

2204.29.81 Wine of fresh grapes, other than sparkling wine, of an alcoholic strength by volume >14% in containers holding >10 liters

2204.30.00 Grape must, nesoi, in fermentation or with fermentation arrested otherwise than by addition of alcohol

2208.20.40** Spirits obtained by distilling grape wine or grape marc (grape brandy), other than Pisco and Singani, in containers each holding not over 4 liters, valued over $38 per proof liter**Only a portion of HS8 digit is to be coveredb)

Note that it is only origin France and Germany targeted in this latest update. The 25% tariff on these new products is expected to go into effect for items imported after midnight on January 12, 2021. Please also note that the tariffs are specific to the size of the containers thus not affecting the normal 750ml bottles or 1.5 L bottles, but only on over 2L for the majority of the items. We will update further when the final notice is published.

Please contact us with any questions.

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