Section 301 Tariff Update: We are closely following the Section 301 tariff proposals of 10% and 12.5% tariffs on 60 economies, including most of the wine, spirits, and beer production countries.  The USTR/United States Trade Representative is the agency responsible for the Section 301 investigation and justifies the proposed tariff by determining that the targeted economies do not effectively ban or control the import of products that may be made using forced-labor. The use of forced labor would artificially lower costs of products and violates international human rights provisions. The comment period is open until July 6 and WSSA is submitting comments with key industry coalitions, such as the TNT/Toasts Not Tariffs Coalition and as an individual association. We highly encourage all companies to submit comments explaining how tariffs directly impact your business. While the coalition statements broadly address the challenges tariffs create for the entire industry, individual company comments are often the most impactful. We are happy to assist anyone to prepare comments should you be interested. The process for submitting comments is simple:

• Go to Comments.ustr.gov
• Enter Docket Number USTR-2026-0265
• Click “Submit Comment” 
• Fill out required Submitter Information and paste or upload comment
• Review Public Version & Submit Comment

The countries/economies targeted are listed below:

10%: Canada, UK, EU,  Mexico, Ecuador, Indonesia, Pakistan, Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, and Taiwan. USMCA eligible goods remain exempt, but UK whisky is NOT currently on the exemption list (despite previous statements by President Trump promising the exemption)

12.5%: Algeria, Angola, Australia, Bahamas, Bahrain, Brazil, Cambodia, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Honduras, Hong Kong, India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Thailand, Trinidad and Tobago, Turkey, United Arab Emirates, Uruguay, Venezuela, and Vietnam.

There is also another ongoing Section 301 investigation evaluating excess capacity. The USTR is reviewing 16 economies to determine if their manufacturing processes create “structural excess capacity.” They are looking at subsidies, lending, state control, labor, and environmental issues and focusing on specific sectors, such as steel, aluminium, automobiles, ships, semi-conductors, chemicals etc. Processed food and beverages is on the list and industry groups, including DISCUS and the Brewers Associations and TNT have submitted comments. The comment period for this investigation closed on April 15, and no tariff proposals have been published but it is important to be aware that there could be multiple Section 301 tariffs implemented. More information will be provided as soon as there is any news.   

New Functionality in the CAPE System for IEEPA Tariff Refunds: CBP has announced a new CAPE enhancement effective June 29, 2026, aimed at streamlining how certain entries flagged for reconciliation are handled before the reconciliation entry is filed. Before June 29, CBP would not process CAPE declarations for entries flagged for reconciliation until the reconciliation entry had been filed. Under a new CAPE enhancement effective June 29, 2026, CBP will now accept CAPE declarations for eligible flagged entries before the reconciliation entry is filed.

Key points:

• Eligible entries must be unliquidated or within 80 days of liquidation.
• Once accepted, CAPE will remove applicable IEEPA duties from the underlying entries, with refunds handled separately from the future reconciliation.
• Entries with a reconciliation already on file are not included in this phase and will be addressed in a future CAPE update.

This change primarily impacts importers that use reconciliation entries, which are relatively uncommon in the beverage alcohol industry. Importers with reconciliation filing deadlines approaching within 30 days should continue to prioritize those filings. We will continue to monitor CAPE developments and provide updates as additional phases are implemented.

USMCA Update: Attention remains focused on the upcoming USMCA renewal deadline of July 1, 2026, when the United States, Mexico, and Canada will assess the agreement and determine whether to extend it as is, or move into a period of annual updates until the final expiration date in 2036.  The President has indicated he is not in favor of the agreement he created during his first term, but trade experts indicate that bilateral talks are in play with the expectation that most of the benefits of the agreement will remain in place.  Negotiations will most likely continue beyond the July 1 deadline.   We will continue to monitor closely and advise on any new rules of origin changes or updates on the wine and spirits sector.   

Threat of 100% tariffs on French Wine and Champagne:  Last week President Trump announced that he would impose 100% tariffs on French wine and champagne if France insists on the DST/Digital Services Tax on USA tech companies. The French government seems to be holding their ground on the DST tax, but we believe the Trump’s statement is more a threat than a reality. At this point, there is no further information and discussions between the two countries are continuing on the DST tax.   We will keep you posted if there are any further developments. 

Port of Rotterdam Closed: Port of Rotterdam is experiencing operational disruptions as extreme heat, system failures, and ongoing labor strikes have forced the closure of several container terminals, with some facilities remaining closed since the previous day. These disruptions are significantly impacting container pickup and delivery operations. As a result, containers with scheduled cutoff times may not reach the terminals in time, and deliveries to customers may also be delayed or, in some cases, unable to proceed if containers cannot be retrieved. Customers with cargo moving through Rotterdam should anticipate delays and remain in close contact with their logistics providers for the latest shipment updates.

Port Wellington Closure Update: Due to severe weather, New Zealand’s Wellington Port operations will be suspended for the next few days. This disruption is affecting all carriers operating through Wellington, with other shipping lines also rolling bookings. As a result, equipment shortages and terminal congestion are expected over the coming week. We recommend allowing for potential delays and will continue to monitor the situation and provide updates as more information becomes available.

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 insuring 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!