The dispute between Toulouse, France-based Airbus and Chicago-based Boeing Co. encapsulates a criticism from Trump and others -- that the WTO is a slow-moving bureaucracy -- because it’s a case that’s taken about 15 years to resolve.
European beverage producers are already reeling from the uncertainty stemming from Trump’s repeated threats to slap new tariffs on wine, liquor and other alcohol.
The Trump administration is currently evaluating whether to penalize French wine and other goods in response to France’s tax on digital companies like Amazon.com Inc., Facebook Inc., and Alphabet Inc.’s Google.
“The degree of uncertainty has somewhat notched up a little bit,” said Pernod Ricard SA Chief Executive Alexandre Ricard on an Aug. 26 conference call.
Paris-based Pernod Ricard produces top-shelf wines, bitters, whiskeys, spirits, cognac, brandies and rum.
The impact of Trump’s tariffs will also have an unwelcome effect on Scotch whisky producers, which are already girding for the fallout of a potentially messy no-deal Brexit.
The EU exported $2.1 billion worth of Irish and Scotch whiskeys to the U.S. in 2018, according to data provided by the Geneva-based International Trade Center.
Many U.S. exporters oppose the Trump administration’s proposed tariffs, which they say could boomerang and jeopardize thousands of American jobs.
Whiskey Shot
U.S. whiskey producers have already become collateral damage from Trump’s steel and aluminum tariffs -- which spurred the EU to retaliate with a 25% tariff on U.S. bourbon and whiskey. What’s more, the EU has threatened further penalties on $12 billion worth of whiskey and other U.S. exports stemming from a related WTO dispute over U.S. subsidies to Boeing Co.
“Depending on the level of tariffs imposed on EU spirits and wine, we estimate it could negatively impact U.S. businesses, leading up to a loss of jobs from 11,200 to even 78,600 jobs across the United States,” said Chris Swonger, the president and CEO of the Distilled Spirits Council.