U.S. tariffs soon to hit Champagne

That glass of Champagne being raised to welcome in the new year is about to get a lot more expensive.

Absent a major breakthrough in trade negotiations with France, the Trump administration is preparing to raise tariffs on a host of French products — including cheeses, wines and Champagne — by mid-January. That move might result in a 100% tax increase on France’s key exports.

It is in response to a pending digital tax imposed by Paris on companies such as American giants Google, Facebook and Amazon. French officials believe the tech companies have circumvented tariffs for years by developing headquarters in low-tax European capitals.

The U.S. move would severely affect the French wine industry and hit its sparkling wine varieties, which amount to over $775 million in exports to the U.S. each year, particularly hard.

U.S> wholesalers, restaurateurs and businesses are warning the White House that its next round of tariffs could have a ripple effect well beyond the wine belt.

In October, the U.S. imposed a 25% tariff on select wines from France, Spain, Germany and the U.K. But the next round threatens to increase tariffs on all varieties, and on goods such as cosmetics, handbags and cheese.

MICHAEL WILNER, MCCLATCHY NEWS SERVICE