 |
| Global Logistics Update 7/10/26 Section 301 Forced Labor Tariffs: Comments Closed, Hearings Held, Decision Point Ahead The public comment window we flagged last week officially closed July 6, and USTR held hearings on the proposed action the very next day, July 7. As a reminder, USTR determined in June that all 60 targeted economies had failed to adequately police forced-labor goods and proposed a 10% duty on countries with a forced-labor import ban (or a commitment to one) and 12.5% on everyone else. For our industry, that split matters a lot: Canada, the UK, Mexico, and the EU sit at 10%, but several of the world’s biggest wine and spirits producing regions — Australia, Chile, New Zealand, South Africa, and Argentina — are sitting at 12.5%. USMCA eligible products should remain excluded from any Section 301 tariffs. Reporting suggests USTR could move to finalize this as early as late July. We’ll flag the final determination the moment it’s published. Important: The EU deal should exclude EU goods from tariff stacking due to the Turnberry Agreement (EU-USA trade deal) described below but we are awaiting final information. EU Tariffs set to go to 15%: The EU-U.S. trade agreement formally took effect July 1, locking in a 15% U.S. tariff on most European goods — including wine and spirits — through the end of 2029. Industry groups, including WSSA, pushed hard for a beverage alcohol exemption, but as of now, no exemption was granted. The 15% level is now the baseline for almost all EU products, with very limited exemptions planned for September 1. The deal indicates that the 15% is an all-inclusive ceiling and will not be stacked on top of normal MFN rates or any other tariffs (such as Sec 301). The exemption that should be watched in our industry is for cork, as cork will be eligible for the normal MFN rate (currently duty free-0%) as of September 1, 2026, under the “unavailable natural resources” provision. CBP/US Customs has not updated the expected new EU structure, and we are awaiting further information via the CBP CSMS messaging system as to the implementation process and date for the new EU level. Airbus-Boeing Civil Aircraft issue: Back in 2021, the U.S. and EU suspended the 25% Boeing-Airbus dispute tariffs on wine, spirits, and cheese for five years — and that truce was expected to expire July 11, 2026. Fortunately, this truce continues while the parties negotiate. We also expect the newly signed EU-USA trade deal to impact any imposition of tariffs exceeding the 15% ceiling defined in the agreement. We will continue to monitor and send updates as news is received. USMCA Update: Annual Reviews Now the New Normal As anticipated, the July 1 joint review deadline passed without a renewal. The U.S. has moved into the treaty’s annual review mechanism, which continues through the agreement’s 2036 expiration unless the three countries agree otherwise. USMCA remains fully in force in the meantime — qualifying goods, including Canadian whisky and Mexican tequila/mezcal, continue to receive preferential treatment, and USMCA-eligible goods remain exempt from the Section 301 forced-labor action above. The next checkpoint: U.S. and Mexican negotiators are set to meet the week of July 20 for a third round of bilateral talks. We’ll keep tracking this for any rules-of-origin changes relevant to spirits production. France Wine Tariff Threat & Spain trade threat: No new movement since the G7 summit in mid-June, when President Trump threatened a 100% tariff on French wine and champagne if France doesn’t drop its digital services tax on U.S. tech firms. Macron has publicly held his ground. Nothing has been implemented, but the threat hasn’t been withdrawn either. If it were ever actually imposed, it would effectively price French wine and champagne out of the U.S. market overnight — worth keeping on your radar given how quickly this administration has moved from threat to action on other fronts this year. Trump further threated to ban all trade with Spain at the recent NATO summit, lashing out due to his feeling that Spain does not contribute enough financially to the North Atlantic Treaty Organization’s budget. Since these statements, it is reported that Trump had a good meeting with Spanish Prime Minister Pedro Sanchez and tensions have eased. Port Disruptions: Rotterdam and Antwerp Labor Actions Easing, Backlogs Still Heavy The lasher strike that froze container handling at Rotterdam and the pilot walkout that snarled Antwerp traffic have both eased in the past week, but the damage lingers. Pilot services at Antwerp have resumed, though vessel backlogs are expected to persist through this week, compounded by reduced labor availability as holidays begin. Rotterdam’s ECT terminal is running at roughly 86% yard occupancy with reduced berth productivity, and barge/feeder delays of 36-48 hours are common across both ports. Customers moving cargo through either port should build in buffer time and stay close to their service reps for updated cutoffs. NZ Weather issues:New Zealand has been hit with severe weather over the past few weeks creating delays at ports and restricted port stays. Vessels have been re-routed and port omissions have created some backlogs and schedule disruption. Expect delays due to these weather issues and let us know if you have any port or cargo specific questions. Chile update/Panama Canal:The direct service vessel to the US East Coast (ONE, COSCO, CMA shared service) is experiencing loading limitations due to weight and Panama Canal entry/appointment scheduling. The Panama Canal Authority has plans to decrease draft levels for vessels due to the expectation of a very severe El Nino. There has been one cut in the draft level on July 1, and two further stages are planned for draft reductions for the Neopanamax locks to manage water levels, including one on July 24 and one on August 15. The Panamax locks are also scheduled for operational restrictions due to maintenance in mid-July, temporarily cutting the number of daily booking slots. CBP CAPE Update: Warehouse Entry Change, Phase 3 Coming Effective July 7, CBP stopped accepting warehouse entries (Entry Types 21 and 22) on CAPE declarations — any submitted going forward get rejected with an “entry type not allowed” error. Warehouse withdrawals are unaffected since IEEPA duties were already paid at that stage. Bigger picture: CAPE Phase 3, which will address entries that have already been finally liquidated, is on track for late July. We’ll cover the details as soon as CBP publishes the guidance. LCL Services from France, Italy, and Spain/Portugal – SUMMER UPDATE! Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison, New Jersey. For the summer months, all containers will be temperature controlled, ensuring your cargo is protected from summer heat. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information! |