United States of America president, Donald Trump, hinted that there may be tariff hikes on all French Champagne and Merlot products.
In a CNBC interview on Monday, President Trump said “France charges us a lot for the wine”, yet they charge the French a little for French wine.
“You know what? It’s not fair. We’ll do something about it,” he added.
The European Union levies tariffs of 11 to 29 US cents (R4.30) on a standard 750 milliliter bottle of US wine, while the US charges 5 cents (75 SA cents) to import the same volume of still wine and 14 cents for sparkling wine, according to the Wine Institute, which represents the interests of California winemakers.
US tariffs could have a significant impact on European vineyards -as America is the biggest market for EU wines, should the US raise its tariffs as a result.
In November 2018, Trump posted on his Twitter account about the unfair exchange taking place between the two countries.
Trump’s latest tariff threat follows his decision to scrap planned tariffs on all Mexican imports, and his threat to expand tariffs to virtually all Chinese goods if Chinese President Xi Jinping fails to meet him at the G-20 summit in Japan at the end of the month.