This Week’s Tariff Update
As the 1 August deadline looms, the reporting rollercoaster continues. The week started out at a solid 30%, then the EU made statements about preparations for retaliatory tariffs to be implemented on August 7, and now, in the last 24 hours, there has been a swing to conversations about a universal 15%. The speculations will hopefully resolve soon with an announcement, and like the rest of our industry, we await confirmation that a negotiated agreement has been reached. **EU plans can be found here**
Below are the latest articles from this week’s press.
The Trump Administration and Wine: How Is This Pairing Going? (WineAmerica) | Wine Industry Network
EU heading towards 15% tariff deal with US, EU diplomats say | Reuters
Investing trends Europe’s companies sound alarm over tariff hits amid scramble to strike U.S. trade deal | CNBC
US and EU close in on 15% tariff deal | Financial Times
Trump: 50-50 chance of reaching trade deal with EU | Politico
Italian Winery Closures
The traditional August vacation period, centered around Ferragosto (August 15th) is upon us. Many smaller wineries have already shut down for the period and are now likely closed between 4-6 weeks during July – August.
Be aware that mail responses can be delayed by weeks, and phone calls may go unanswered from mid-July through to early September.
New orders submitted during closure periods typically aren’t processed until producers return, creating potential inventory gaps
Shipping of orders during August may also be impacted as even those producers who maintain minimal operations during August often suspend shipments, particularly for temperature-sensitive wines, until cooler weather returns.
- Make sure you identify your emergency contacts if you have orders already shipped.
- Make sure you know when your supplier reopens for business after the summer period,
Talk to our sales team if you do have an Italian order ready now – as we still offer options to move this from our more frequent lanes.
Potential August Blank Sailings
We are preparing for a potential wave of blank sailings in August. Unlike simple delays, blank sailings represent complete cancellations of scheduled services, creating fewer available sailings, unpredictable transit times, and significant supply chain planning disruptions.
The likelihood of blank sailings is exceptionally high, driven by escalating trade war concerns and anticipated tariff implementations in 2025, particularly impacting US-China trade routes.
Our team is observing considerable market volatility as businesses over-ordered before the August 1 tariff deadline to avoid potential cost increases, subsequently forcing steamship lines to implement blank sailings for capacity rebalancing.
Additionally, European departures are experiencing delays with shipments being held or postponed by one week from original schedules, creating transit backlogs. This accumulation of delayed cargo requires steamship lines to realign their capacity allocation.
These combined factors—pre-tariff over-ordering, European delays, and trade policy uncertainty—are converging to create a perfect storm of operational challenges which result in blank sailings. |
