Spanish winemaker rushes U.S. deliveries to beat possible tariffs

Bangkok Post Group

A top Spanish winemaker is hedging against anticipated tariffs by U.S. President Donald Trump on European Union products by sending extra stock to the United States that would allow them to stagger any price increases. - REUTERS

Transcript

00:00A top Spanish winemaker is shipping extra stock to the U.S. to mitigate potential tariffs

00:06from U.S. President Donald Trump on EU products.

00:10Luisa De Paz, export manager for Proto's Winery, said they've shipped enough stock to the U.S.

00:16to last six months if a 10 percent tariff on EU-1 exports is imposed.

00:29We work with local importers, and all of them are stockpiling to maintain a security stock

00:34for the first six months.

00:36This is a short-to-mid-term solution, but it is not a solution for the future."

00:47Trump has vowed to hit the European Union and other countries with wide-ranging tariffs

00:52in response to their trade surpluses with the U.S.

00:55Data shows Proto's competitors are also moving to protect themselves.

01:00Spanish wine exports to the U.S. rose 20 percent in December, partly due to importers stockpiling

01:06ahead of possible tariffs, according to the Spanish Wine Federation.

01:11Sending extra stock lets importers stagger price hikes should tariffs be introduced,

01:17De Paz said.

01:18The U.S. is Spain's second-largest wine export market after Germany, according to the Spanish

01:23Wine Observatory.

01:25But Spain could lose out to competitors such as Argentina, which might benefit from President

01:30Javier Millet's close relationship with Trump.

01:33Miguel Sanz is the director of Ribera del Duero's Wine Certifying Authority.

01:41Countries with no tariffs will be in a more advantageous position.

01:45Wines from around the globe are sold in the U.S., but especially from Europe.

01:49Wines from Argentina, Chile, Australia and New Zealand are also sold there.

01:53If those markets are not affected by the tariffs, they will be in a better position.

02:00Meanwhile U.S. companies are also rushing to import auto parts, Italian parmesan and

02:06French cognac, ahead of possible tariffs.

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