Fred Minnick reported on Monday that over 19,000 individuals sent petitions to President Trump as part of the Toasts Not Tariffs Coalition and Distilled Spirits Council of the U.S. (DISCUS).
“Thousands of consumers and workers throughout the wine and spirits supply chain, from barrel makers to bartenders, are sending a clear message to the administration that we want toasts, not tariffs,” the Toasts Not Tariffs Coalition expressed in a statement according to Fred Minnick. “We need the president’s leadership to secure trade agreements that protect fair and reciprocal zero-for-zero tariffs with the EU and our other key trading partners. This will bolster our great hospitality industry and result in increased exports of U.S. wine and spirits products, and investments and job growth in communities across our country.”
The Toasts Not Tariffs Coalition is a group of 57 organizations from various aspects of America’s three-tier system, which range from on-premise and off-premise accounts, suppliers, importers and distributors.
The coalition reported that from 1997 to 2018, the American and European Union both had a zero-for-zero tariff agreement until 2018.
The Independent reported in 2018 that during President Trump’s first term, the administration imposed a 25 percent tariff on steel and 10 percent tariff on aluminum from most countries in May. In June, the tariffs expanded to include Mexico, Canada and the European Union.
The European Union responded with approximately $2.8 billion worth of duties on American products, including whiskey.
Per Fred Minnick, the organization reported that American whiskey exports dropped 20% from 2018 to 2021.
At present, the coalition shared that imported wines, spirits, barrels, bottles and corks currently face a 10% tax. The organization intends to increase the tariff starting July 9 based on the imported good’s country of origin if a trade agreement cannot be reached.
If President Trump’s 50% import tariff on goods from the EU goes through on July 9, the EU will impose retaliatory tariffs in response. It is currently on track to impose such tariffs starting July 14.
In May, VOS Selections, a wine importer, won a lawsuit in the U.S. Court of International Trade against the Trump administration, and a judge ruled the tariffs were unconstitutional and “illegal.” The administration appealed the ruling and CNBC reported that the court of appeals gave the President permission to pause the verdict.
Trump Trade Advisor Peter Navarro claimed that even if the administration lost the battle, they would find other ways to circumvent the rulings, according to CNBC.
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