At long last, the retaliatory tariffs between the U.S. and the E.U. have fallen.
The tariffs — last set at 25% for most wines and spirits from most E.U. countries — were the result of a long dispute on Boeing and Airbus subsidies. Their dissolution marks a sigh of relief for the spirits industry.
For many in the business, this means another layer of returning to normalcy. Fewer embargoed shipments, better prices and margins, more fluid availability of products like Scotch, Cognac, and European wines.
But for others, the pain lingers: American whiskey is still waiting on its deal, though there's hope. A joint statement from the U.S. and E.U. noted that they hope to have a resolution on the American whiskey tariff before the end of the year. (Tariffs on the spirit are the result of another trade standoff around steel and aluminum.)
And, as one taxation battle ends, another heats up.
Recently, we wrote about the tax battle that ignited after legislation in New Jersey proposed to equalize the tax rate for beer and canned cocktails. More states (PA, MI) have brought similar legislations to the table, like laws that would allow for the sale of canned cocktails outside of liquor stores (in grocery, for example).
DISCUS also responded to the claims made by a coalition of breweries, beer conglomerates, and beer industry associations, defending the changes.
More to come on each of these soon.