© Reuters. FILE PHOTO: Bottles of red wine are seen in the cellar of Chateau Le Puy in Saint Cibard

PARIS (Reuters) – The U.S. decision to impose additional tariffs on French wines and cognac, which come in addition to a first set of tariffs late last year, will cost the sector a total of over 1 billion euros ($1.23 billion), the French wine exporters’ federation said on Thursday.

The U.S. government on Wednesday said it would raise tariffs on certain European Union products, including wines from France, the latest twist in a 16-year battle over aircraft subsidies between Washington and Brussels.

Washington had already imposed additional tariffs of 25% on French wine in October 2019, among an array of EU food, which FEVS said had cost the sector 600 million euros ($737 million) over a year.

“The overall impact (of the October 2019 taxes and those decided on last night) will be over one billion euros for the entire wine and spirits sector,” Cesar Giron, president of the Federation of Wine and Spirits Exporters (FEVS), told Reuters.

“This is a real sledgehammer blow in a fight which has nothing to do with us,” he added.

He also said the impact of the new taxes on cognac sales in the United States would be “major”.

($1 = 0.8142 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *