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24 October 2019

US hits Scotch whisky, Italian cheese, French wine with 25 percent tariffs

USA | On 18 October 2018 the US slapped hundreds of European products with new tariffs, including whiskies, wines, and cheese. The levies will be unevenly felt by food and drinks producers across the region. Europe’s brewers are lucky: for now, their beers are exempted from the new tariffs.

The announcement came after the World Trade Organisation granted the United States permission to tax European exports up to USD 7.5 billion annually. The real target are civilian aircraft from Britain, France, Germany and Spain – the countries that formed Airbus – which will now cost 10 percent more when imported to the United States.

Among the items facing higher tariffs are wines from Germany, Spain, France, and the UK. For some reason or other, Italian and Portuguese wines have escaped the increase.

In the drinks industry, where investors had been bracing for a potentially severe impact, the US has spared cognac, champagne and some Irish whiskeys. However, whiskeys made in Northern Ireland, like Bushmills, will be affected by tariffs, but those made in the Republic of Ireland will not.

Hard hit will be lovers of Scotch whiskies. They will be affected by the tariffs too.

The US Trade Representative’s Office said it will re-evaluate these tariffs as discussions with the EU continue in order resolve the dispute.

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