There’s a glimmer of light in the trade war between European countries and the U.S. in which wine has been collateral damage. The Biden administration has agreed to suspend tariffs on U.K. wines and spirits related to the dispute over subsidies to Airbus. The move will come as welcome but overdue for Scotch whisky players in the U.S., where the single malt category has been hampered by the 25 percent tariff.
Wine consumers will see little relief, however. Tariffs of 25 percent on still wines from France, Spain and Germany remain in effect for now.
“Today is a very good day for Scotch and Scotland,” Diageo CEO Ivan Menezes told Shanken News Daily, a sister publication of Wine Spectator. Scotch whisky exports to the U.S. fell 35 percent from October 2019—when the U.S. imposed 25 percent tariffs on single malts—through November 2020, according to the Scotch Whisky Association (SWA).
Still, U.K. tariffs on American whiskey remain in place while the nations negotiate a final agreement. And it’s unclear if the White House will seek a similar pause with the European Union, which could stop tariffs on imported wines. For more on the trade fight, read the full story at Shanken News Daily.
