New Tariffs Begin Today for Wine Shipped to China

Effective today, April 2, 2018, China has imposed import duties on a significant amount of agricultural exports, a move that appears to be in direct retaliation of the Trump administration’s new tariffs on steel and aluminum imports.

The list of products is substantial and includes various kinds of pork, fruit, nuts, and wine varieties. Some of these varieties include sparkling wine, small packaged fresh grapes brewed, and fresh brewed wine packaged between two and ten liter containers. The attached document lists all of the items impacted by this new tax, along with the specific rate percentage associated with each product.

These new measures point to an impending trade war between the United States and China, a war that may cause some disruption within the US agricultural and forest products industry. As China is the fastest growing market for wine of all origins, exporters in the USA may feel the disadvantageous effects of these new tax rates, and a potential shift in Chinese importers away from USA wine suppliers. As US products will now be more expensive in China, the Chinese consumer will begin to search elsewhere for cheaper products. With additional measures against Chinese exports still to come, the complete impact of this trade war has yet to be seen.

We will continue to keep you informed of this situation as it develops, and, as always, please contact us with any questions or concerns.