A new development has the wine industry heaving a sigh of relief. Just last week, the European Union and the United States announced a temporary slackening of the tariffs that have put a strain on their economic relationship. So what exactly does this mean?
As a result of an almost 20-year dispute over airline subsidies, the World Trade Organization gave the two entities go-ahead to impose a slew of tariffs on imported goods. During the Trump administration, these tariffs were slapped onto a bunch of luxury goods making their way into the U.S.—not limited to those from Germany, France, the U.K., and Spain. They affected wines from France, Spanish olive oil, Italian cheese, single-malt Irish and Scotch whiskies, and many other goods from across the continent. The result was a 25% tax, whose reverberations were felt across Europe and the U.S.