China Increases Taxes on US Wines

09/04/2018 07/04/2018 Effective April 2nd, China has increased the tariff on U.S. wine imports by 15%. This action was taken in retaliation for U.S. government trade actions on steel and aluminum.

Effective April 2nd, China has increased the tariff on U.S. wine imports by 15%. This action was taken in retaliation for U.S. government trade actions on steel and aluminum.

This will increase the total tariff and tax paid on a bottle of U.S. wine imported into China from 48.2% to 67.7%. Chile, Georgia and New Zealand wines enter China tariff-free and only pay the 27% combined tax rate. Australian wines will be tariff-free starting in 2019. For more information on the tariffs, please see the report prepared by USDA.

“China is an important and growing market for California wines,” said Robert P. “Bobby” Koch, President and CEO of Wine Institute, “and we are disappointed by the implementation of these additional tariffs. Over the last decade, we have made tremendous progress in developing a loyal and enthusiastic base of Chinese consumers who enjoy California wines and appreciate their quality. These tariffs put our products at a price disadvantage and we urge swift resolution of this issue before long-term disruptions are felt. We will continue to pursue our marketing initiatives in China with confidence that the popularity of California wines will continue to grow.”

China is one of the fastest growing wine markets in the world and will soon be second only to the U.S. in value. U.S. wine exports to China and Hong Kong were up 10% in 2017 to $197 million. The value of U.S./California wine exports to China alone has increased 450% in the past decade.

Source: Wine Institute

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