China ups retaliatory tariffs on US goods to 84%
China will impose 84% tariffs on US goods from tomorrow (10 April), up from the 34% previously announced, in a move which looks to further de-stabilise global markets and consumer confidence in sectors such as wine and spirits.
The escalation follows the announcement of tariffs on all goods from the China to the US of 104%, which come into effect today (9 April).
According to the BBC, European markets – which were already down – have dropped further today after China’s announcement of the additional tariffs on US goods.
Speaking at a news conference, China’s foreign affairs spokesperson, Lin Jian, accused the US of “bullying practices”, and urged Trump's administration to “demonstrate an attitude of equality, mutual respect and reciprocity” in order to resolve the dispute through dialogue. However, if Trump insists on provoking a trade war, “China will be compelled to fight to the end”, he said.
It is just the latest chapter in an ongoing tariffs saga which is turning up the pressure cooker on highly internationally traded goods such as wines and spirits.
Plus, Californian exporters have already suffered a slide in sales to China over the past decade thanks to deteriorating relations.
Back in 2018, Chinese authorities announced plans to increase the total tariff and tax paid on a bottle of wine imported from the US from 48.2% to 67.7%. Other US imports faced duty hikes of between 15% and 25%, imposed in retaliation to Trump’s decision to raise duties on Chinese steel and aluminium imports and limit China’s investments in the US.
In 2018, the US was the sixth biggest wine importer to China, having shipped 9.6 million litres with a value of $75.6m the year prior [Chinese General Administration of Customs].
According to several sources, including CAWS, it is believed US wine exports to China have since dropped by about one-third from 2017.
US merchants also have 20% tariff inbound tariffs for wine from the EU to contend with.
As reported by Reuters, wine merchants such Ansley Wine in Atlanta, are currently bracing a spike in costs for the imported wines and spirits he sells when the tariffs kick in today.
“That means everything will go up,” owner Adam Williams said, including the customer favourite – a 2023 vintage Sancerre from France which can cost $45.
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