Wine Caucus Asks USTR to Negotiate Lower Tariffs on Wine Exports

More than 60 House members, led by senior Ways and Means Committee Democrat Rep. Mike Thompson of California and Rep. Dan Newhouse, R-Wash., asked U.S. Trade Representative Katherine Tai to negotiate an end to China's retaliatory tariffs on American wine, and to negotiate lower tariffs in India and Vietnam, where American wine faces 150% and 50% tariffs, respectively.

"U.S. wine exports have seen an unfortunate decline in value over the last six years due to numerous factors including retaliatory tariffs and the coronavirus pandemic," the lawmakers wrote last week. "Despite some recent recovery, U.S. wine exports are still well below their peak of $1.62 billion in 2016."

The Congressional Wine Caucus noted that because Australia inked a trade deal with India, its wine will face only a 75% tariff, which will drop over time to 25%; Vietnam's participation in the Trans-Pacific Partnership means Chile and New Zealand have tariff-free access to Vietnam.

"As you work to expand U.S. agricultural exports, we ask that USTR commit additional resources to expand access to critical markets for high value exports like wine. We recognize that the administration is not pursuing traditional comprehensive market access agreements at this time but urge you to launch targeted efforts to address the competitive disadvantage faced by U.S. wine producers," they wrote.