Feb 17 • 09:06 UTC 🇰🇷 Korea Hankyoreh (KR)

If the US-China raises 'wine tariffs', wine will become cheaper in Korea

The article discusses how potential high tariffs on French wine by the U.S. could lead to lower wine prices in South Korea.

The article highlights the implications of President Trump's proposed 200% tariffs on French wines in retaliation for France's rejection of his invitation to participate in a Peace Committee. This move, targeting an important sector for France's economy where wine exports account for a significant portion of revenue, poses serious economic risks not just to French wine producers but also to numerous workers in the vineyards and related industries. The high tariffs could severely disrupt the French wine export market, which relies heavily on the United States as a leading destination for its goods.

Additionally, the piece emphasizes the political sensitivity surrounding wine as a product in trade disputes, notably in France where the agricultural sector has faced growing pressure from extreme right political movements. The article describes how Farmers have become discontent with the government’s handling of agricultural subsidies while simultaneously addressing the U.S., leading to increased vulnerability among farmers during the ongoing trade tensions. The reactions of the farmers may significantly affect the political landscape, indicating how trade issues are intertwined with domestic politics.

Lastly, the article discusses the historical context of wine tariffs in U.S.-Europe trade relations, referencing an earlier instance when similar tariffs were imposed during Trump's first term in 2019 over EU subsidies to aircraft manufacturers. It suggests that wine has become a recurrent issue in trade disputes, acting as somewhat of a bargaining chip, further complicating international relations and potentially impacting local markets, such as South Korea, where changes in import prices could generate noticeable consumer reactions.

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