US-China dispute puts more pressure on whiskey

American whiskey has been included in the new round of tariffs China has imposed on US imports, adding fuel to the ongoing trade spat between the two nations.

American whiskey has once again been caught in the firing line of a trade spat

On Friday 23 August, China’s Finance Ministry announced its intention to implement additional tariffs on 5,078 items amounting to US$75 billion, including American whiskey.

The move was in response to president Donald Trump’s decision to slap a 10% tariff on US$300bn worth of goods from China in a trade war that has been rumbling on for more than a year.

“The US measures have led to the continuous escalation of [China]-US economic and trade frictions, which have greatly harmed the interests of China, the United States and other countries, and have also seriously threatened the multilateral trading system and the principle of free trade,” said China’s Finance Ministry in a statement.

China’s tariffs will be implemented in two phases, on 1 September and 15 December. In the December round, an additional 5% tariff will be placed on American whiskey, which has already been subject to a 25% import tax hike.

In response, president Trump this week sanctioned an additional 5% tariff on US$550bn worth of Chinese imports.

This will increase the US’s planned 25% tariff on US$250bn worth of Chinese imports to 30% on 1 October, and its 10% tariff on US$300bn worth of Chinese imports to 15% “effective on the already scheduled dates”.

It is thought that the tariffs will be added to the Federal Register before this weekend.

In addition to China, the US has been embroiled in a two-pronged trade dispute with the EU concerning both civil aircraft subsidies and US tariffs on imports of steel and aluminium.

Earlier this month, US drinks trade groups rallied together to urge that alcoholic products are removed from the firing line, arguing that 78,000 American jobs are at risk.