California wine producers are going to suffer from tariff battles between the U.S. and China. The Chinese announced that effective June 1 it will add another 15% to tariffs on US wine imports. That’s on top of the 15% imiplemented in April 2018 and another 10% increase last September, according to the Wine Institute.
The total tax and tariff rate will be 91%.
China is second only to the U.S. in total value of wine sales. Exports to China and Hong Kong have grown 450% in the last 10 years. They dropped 25% in 2018 when the tariffs were first increased.
This is bad news for U.S. wine producers and it could mean a price increase to consumers from this country.