The imposition of US tariffs in a ‘tit for tat’ action between the EU and the US, endorsed by Trump in his ‘America First’ strategy, is now being addressed by President Biden. In a joint statement on the 5th March 2021, the EU and USA agreed to a mutual suspension of the EU & US Large Civil Aircraft WTO Dispute. Both parties have agreed to a four-month period to work to resolve the long running dispute and “embark on a fresh start in the relationship”.
The 25 per cent tariff affected French, German, Spanish and UK still wines being imported to the US and impacted in particular the sale of Burgundy and Bordeaux fine wines. Sparkling and Italian wines remained exempt from the levy and demand for Champagne and top Italians from US buyers soared last year.
Liv-ex reported a surge in US member activity immediately following the announcement on the 5th March with Bordeaux seeing the largest uplift in live bids and focus on Lafite Rothschild, Pontet-Canet, Figeac and the second wines of Mouton Rothschild and Lafite in the earliest trading the weekend of the 6-7th March 2020.
This significant development could see changes in demand from US buyers and market share this year and has already injected a boost into an energetic market.
For more information on the latest developments and which wines are offering value now contact our expert team on 0203 384 2262.