New US Tariffs Target EU Cognac In Trade Row

Fresh import tariffs on some French and German goods will be imposed by the Unite3d States as a part of a running trade dispute with the European countries.  

Some specific non-sparkling wine, cognac and other grape brandies along with aircraft manufacturing parts were subjected to the soon to be imposed important tariffs, the US said.

The US Trade Representative said in a statement that these products will be added to the list of products which are being subjected to added import tariffs since 2019.

The current trade dispute between the European Union and the United States are over subsidies for aircraft manufacturers Airbus and Boeing of the EU and the US respectively. The two parties have been clashing for the last 16 years over state support given by the US to Boeing and by European countries to Airbus

Under the fresh escalation of the trade dispute, new tariffs are to be imposed by the US on “aircraft manufacturing parts from France and Germany, certain non-sparkling wine from France and Germany, and certain cognac and other grape brandies from France and Germany”.

The US was justified to retaliate and impose tariffs on goods imported to the US from the EU worth $7.5bn for the support granted to Airbus, said a World Trade Organisation (WTO) ruling in 2019. That prompted the US to impose tariffs to some goods from the EU including certain whiskeys, wines and cheese.

The WTO authorised the EU this year to impose additional customs duties on products imported from the US worth about $4bn.

The latest tariffs were being imposed by the US because, according to it, when the EU imposed tariffs on American goods it used trade data when volumes had been “drastically reduced due to the horrific effects” on the global economy by the coronavirus, the said while announcing the new tariffs.

As a result, “Europe imposed tariffs on substantially more products than would have been covered if it had utilised a normal period,” the US said.

“Although the United States explained to the EU the distortive effect of its selected time period, the EU refused to change its approach,” it added.

Steps that the two sides say correct the offending plane-making subsidies have been taken by them in recent months. However, the two sides are still a distance away from coming to an agreement.

In another development, the EU and China signed a long awaited investment deal this week that targets to open up lucrative new business opportunities which has resulted in further escalation of tensions between the two trading partners – the EU and the US.

The US and China – the two largest economies of the world, have been locked in a long drawn and acrimonious trade war since the middle of 2018 and the relations between the two countries have significantly soured under the presidency of Donald Trump.

Joe Biden will be sworn in as the new US president on 20 January.

(Adapted from

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability

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