UK government considers introducing 25% tax on US wine imports as part of trade spat
The UK government is reportedly considering the introduction of a 25% tax on US wine imports, as part of the ongoing trade conflict caused by former president Donald Trump who imposed a 25% tariff on UK steel imports in 2018.
Trade Secretary Liz Truss believes tariffs will put pressure on key Democratic policitians including Vice President Kamala Harris and Speaker Nancy Pelosi, both of whom have wine producers in their states.
Wine from the US currently accounts for one in ten bottles sold in the UK, with over 100m sold last year. With nearly a third of UK consumers purchasing wine from the US, no other wine producing nation could substitute its volume, limiting consumer choice warned tax pressure group Wine Drinkers UK, which added that some of the UK’s most popular grapes such as Zinfandel and Grenache Rose could disappear from supermarket shelves for good.
“It is likely that if the government introduces the tariff it will make these popular US popular wines unfeasible in the UK,” said Kingsland Drinks managing director Ed Baker. “Adding a 25% tariff on US wines will continue to unfairly penalise these consumers. It is time that the government ensures that wine is treated fairly when it comes to tax.”
A YouGov survey conducted for Wine Drinkers UK found that one in three (32%) of UK adults who drink alcohol say wine is their favourite alcoholic drink, beating beer (25%) and spirits (25%) into second and third place respectively. However, since 2010, duty on wine has increased significantly more (+39%) than on beer (+16%), cider (+27%) and spirits (+27%).
“Wine drinkers are already disproportionally disadvantaged compared to some of their alcoholic counterparts when it comes to custom tariffs," said Baker. "Adding a 25% tariff on US wines will continue to unfairly penalise these consumers. It is time that the government ensures that wine is treated fairly when it comes to tax."