Posted: Jan 21, 2020
Washington CNN - President Donald Trump and his French counterpart have agreed to hold off on escalating a trade war, officials said, avoiding for now a massive new tariff increase on French goods such as wine, cheese and handbags.
Trump had threatened the new duties in retaliation for a tax slapped on revenue earned in France by American tech firms such as Facebook and Google.
Wine importers, along with other businesses that sell French products in the US, had protested the plans, saying the expected 100% tariff would cost American jobs and gut their livelihoods.
Trump's tariffs on European wine have American businesses begging for relief
The White House said Monday that Trump spoke with French President Emmanuel Macron and "agreed it is important to complete successful negotiations on the digital services tax," though did not confirm his decision to hold off on tariffs for now.
Macron tweeted he had a "great discussion" with Trump.
"We will work together on a good agreement to avoid tariff escalation," he wrote.
The two sides will hold off on potential tariffs until the end of the year, the French official said, as negotiations over the digital tax continue at the Organization for Economic Cooperation and Development.
French products, such as Le Creuset Dutch ovens, Hermès handbags and Roquefort cheese, were all in line for the new tariffs, but it was wine that received the bulk of the focus.
One wine importer likened the potential tariffs to the greatest threat to the industry since Prohibition.
A 25% tariff on French wine remains in place due to a separate trade dispute related to Airbus.
By Kevin Liptak
January 20, 2020
Source and complete article: CNN.com
Go-Wine's mission is to organize food and beverage information and make it universally accessible and beneficial. These are the benefits of sharing your article in Go-Wine.com
Professional consulting to the Food and Beverage industry.www.winebusinessacademy.com
The Wine Thief Bistro & Specialty Wines is a locally owned small business in downtown Frankfort, IL offering world class wines in a relaxed, casual gathering spot for friends and family. Offering world class virtual tastings and touchless carryout.https://www.twtwineclub.com/aboutus
Go-Wine 25 Great Wineries in US selection prioritizes quality, value and availability.www.go-wine.com/great-wineries-in-america
Tasting wine is a nice experience, but visiting the places in which wine is made is a magic moment. Available in New York City for touchless pickup.