A bipartisan group of 13 US senators has urged the Trade Representative's Office (USTR) to withdraw 25 percent tariffs that were imposed on European Union wine, food and spirits, according to a letter accessed by Reuters.

The tariffs, which were imposed in retaliation to EU subsidies on large aircraft, affected single-malt Scotch whiskey, Italian cheese, and French wine. Other goods that were hit include yogurt, cookies, olives from France, German coffee and EU-produced pork sausage.

Demand for Goods Decline

Seven Republican and six Democratic senators, including Robert Menendez, John Barrasso, Cory Gardner, Susan Collins, Dianne Feinstein, Pat Toomey, Kyrsten Sinema and Cory Booker said in a letter to USTR Friday that American "restaurants, retailers, grocers, importers and distributors" are experiencing "severe economic hardship due to the increased cost of goods."

The senators noted, "demand for these goods has declined, leaving importers and distributors with months' worth of product, much of it perishable, in storage and in transit with no clear end date for the COVID-19 pandemic." USTR did not immediately comment.

Wine
Wine (Representational Picture) Wikimedia Commons

Last month, Europe's Airbus said it would increase loan repayments to France and Spain in a "final" bid to reverse US tariffs and jog the United States into settling a 16-year-old dispute over billions of dollars of aircraft subsidies.

EU's Impending Retaliation

The United States last year won World Trade Organization authorization to impose tariffs on up to $7.5 billion of EU goods. The US Distilled Spirits Council last month urged ending EU and US beverage tariffs, saying drinks firms on both sides of the Atlantic "have suffered enough."

The group noted Scotch Whisky imports by the United States fell nearly 33 percent between October 2019 and May 2020, a $378 million decline over the same period a year earlier. The EU in a separate dispute imposed 25 percent tariffs  on all US whiskey imports in June 2018. Since then, US whiskey exports to the EU have fallen by 33 percent, or $300 million, the group said.

Trade groups are bracing for an escalation this autumn when the EU is expected to win WTO approval to retaliate with its own tariffs over subsidies for US planemaker Boeing Co. USTR announced in June it was considering imposing additional tariffs on products from many EU countries including gin, vodka, beer, sparkling wine and other whiskeys.

(With inputs from agencies)

EU subsidies on large aircraft