Latest China Tariff Increase on U.S. Wine

SAN FRANCISCO — The Chinese government announced that it would be increasing the tariff on U.S. wines in response to the ongoing trade dispute between the U.S. and China. Effective June 1, China will add another 15% tariff on U.S. wine imports to their country. The additional 15% tariff is on top of a previous 15% tariff increase implemented in April 2018 and another 10% increase in September 2018. When compounded, the new total tax and tariff rate will be 93%.

“This is the third Chinese tariff increase on U.S. wine in the past 14 months, and with each additional round, it becomes more and more difficult to compete in the fastest-growing wine market in the world,” said Robert P. “Bobby” Koch, President and CEO of Wine Institute. “It is imperative to resolve this dispute as soon as possible, so that our wineries do not suffer long-term market loss. Despite these challenges, the California wine brand remains strong with Chinese consumers and we are committed to doing everything we can to ensure this does not change.”

China is one of the fastest growing wine markets in the world and will soon be second only to the U.S. in the total value of wine sales. U.S. wine exports to China and Hong Kong have grown 129% in the past decade. However, U.S. wine exports to China were down 25% in 2018. U.S. wine exports to all markets abroad, more than 95% from California, reached $1.46 billion in winery revenues and 375 million liters (41.7 million cases) in 2018.

Updated May 31, 2019