French Champagne, Cheeses and Handbags Avoid Tariffs

Additional Section 301 tariffs that were set to be imposed against imports of French champagne, cheeses and handbags (among other products) will no longer take effect.

The additional tariffs were originally introduced in retaliation to France’s proposed digital service tax, which would have negatively impacted Google, Facebook and other large U.S. operators. On Tuesday, January 21st, France announced they would no longer be imposing a digital service tax in 2020 and the U.S. responded swiftly by eliminating the planned Section 301 tariffs on imports of French champagne, cheese and handbags.

While talks between President Trump and President Macron appear to be headed in a positive direction, unfortunately, French wines and other European Union (EU) alcoholic beverages, food products and airplane parts are still subject to additional Section 301 tariffs. These tariffs are more likely to stay in place given that they are tied to the EU subsidization of Airbus, and not associated with the planned digital services tax.

Shapiro will continue to monitor the situation and provide updates as they become available.

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