As harvest begins in the warm vineyards of Provence, Tuscany and Rioja, producers and importers face more math and less certainty. The oft-cited “15% tariff” is less a ceiling than a floor. Per the White House’s July 31 Executive Order, importers must first calculate an “ad valorem equivalent” using the still-in-force per-liter duties (19.8¢ for sparkling, 6.3¢ for most still wines under HTS Chapter 22), and then determine whether that number clears 15%. If it falls short, 15% applies; if it exceeds 15%, the higher duty controls. Tariffs for wines with alcohol content greater than 14% are more likely to the pass the 15% threshold. Our friends at Flexport have created a guide to help importers run the calculations. Despite the announcements and press releases from the EU and White House, the text of Chapter 22 hasn’t budged. 

European producers have warned that the consequences of leaving alcohol tariffs at 15 percent could be grave. The Federation of French Wine and Spirits Exporters had previously said a failure to secure an exemption would create an “extremely violent shock.”

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