Greenspoon Marder Client Alert: Tariffs at the Rate of 100% Proposed on $6-$8 Billion of Imports of Wine and Spirits from the EU

Apr 12, 2019 Washington, D.C.,

By: Jessica Wasserman, Esq.

In the long simmering dispute between the U.S. and the EU over subsidization of aircraft, the U.S. recently announced its intention to impose tariffs on imports from the EU into the U.S. The tariffs are in retaliation and are to counter in amount the level of EU subsidies.

The action is being taken following a finding by the World Trade Organization (WTO) Appellate body that the EU has subsidized the production of high value aircraft, causing harm to U.S. interests. The Office of United States Trade Representative (USTR), the agency that handles international trade disputes, estimates the harm from the EU subsidies as $11 billion in trade each year. The amount is subject to arbitration at the WTO and will likely end up being in the range of $8 billion in allowable retaliation. USTR expects the arbitration decision to be issued this summer after which the U.S. is cleared to impose the retaliation under WTO rules. The potential tariff rate increase has not yet been specified but in these cases has historically been set at 100%.

The Office of the United States Trade Representative (USTR) has released for public comment a preliminary list of products to be covered by additional duties in response to adverse effects caused to the United States by European Union (EU) subsidies. This fourteen-page list includes wine and spirits valued in the range of $6-$8 billion. In addition, the list includes home decoration items, clothing, food and many other items.

If you import these products or use imported products, we encourage you to review the list. If your products are on the list, we recommend that you consider:

Submitting comments to USTR due by May 28th.

Testifying at the public hearing in Washington, D.C. on May 15th (request to appear due May 6th).

This hearing and comment period provides you the opportunity to present information and argue for why your product should be removed from the list and not subject to tariffs. USTR has asked for information on:

The specific products to be subject to increased duties, including whether products listed in the Annex should be retained or removed, or whether products not currently on the list should be added.

The level of the increase, if any, in the rate of duty.

The appropriate aggregate level of trade to be covered by additional duties.

Whether increased duties on particular products might have an adverse effect upon U.S. stakeholders, including small businesses and consumers.

For further information, contact [email protected].

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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Greenspoon Marder Client Alert: Tariffs at the Rate of 100% Proposed on $6-$8 Billion of Imports of Wine and Spirits from the EU

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