JESS LANDER
The U.S. Trade Representative recently announced an expansion of tariffs on European wines, food and spirits, effectively delivering what could be a fatal blow to restaurants who are already struggling to keep their lights on during pandemic shutdowns and restrictions.
The first round of tariffs implemented in 2019 on certain wines, foods and spirits from France, Germany, the U.K. and Spain was the Trump administrationâs response to longstanding E.U. subsidies made to French aircraft company Airbus, putting Boeing at a disadvantage.
This latest retaliation, which places tariffs on Cognac and Armagnac and expands the 25 percent tariff to include wines from France and Germany at 14 percent alcohol and above, was announced with little warning and went into effect on Jan. 12. The tariffs even apply to purchases made prior to Dec. 31 that have not yet reached the U.S., leaving businesses with an unexpected and expensive tab.