EU lifts whiskey tariff in steel and aluminum truce

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WTDC Newsletter – November 1, 2021
– President’s Corner – Supply Chain
– EU to lift whiskey tariff as part of steel and aluminum trade truce with US
– Florida governor calls on carriers to divert to Florida ports
– Bottleneck at California ports
– WTDC celebrates Halloween
– Pajama Drive for His House Children’s Home

President’s Corner
Some good news for our spirits clients this weekend as the EU has agreed to lift the 25% whiskey tariff (see article below).
Supply chains have never been so much a topic of popular discussion. From bottle shortages to grocery and department store stocks running low, consumers are taking notice on the disruptions we’ve all been working to avoid for months in the industry. Need to rethink your supply chain in order to have your goods ready for the holidays? Send us a note, we would happy to help.
Stay healthy,
Sean Gazitua, President & CEO

EU to lift whiskey tariff as part of steel and aluminum trade truce with US
“Lifting this tariff burden on American whiskeys not only boosts U.S. distillers and farmers, it also supports the recovery of EU restaurants, bars and distilleries hit hard by the pandemic,” said Chris Swonger, CEO of Distilled Spirits Council.
This weekend the US and EU reached a significant trade accord at the Group of 20 meetings in Berlin. The US and EU agree to remove penalizing tariffs on steel and aluminum in efforts to protect against overcapacity and to instill low-carbon targets for steel and aluminum exports.
After President Trump instituted a 25% tariff on EU steel and aluminum in 2018, the EU retaliated with tariffs on finished US goods such as bourbon, Tennessee whiskey, and Harley Davidson motorcycles. The 25% tax on American whiskeys was scheduled to reach 50% in December if negotiations were not agreed upon.
Fortune: U.S. and EU settle tariff rift that started with steel and escalated to Kentucky bourbon and motorcycles
AJOT: U.S., EU eye global coalition to fix steel, aluminum markets

Florida governor calls on carriers to divert to Florida ports
Last week Florida Governor Ron DeSantis visited JAXPORT to deliver the message that Florida seaports are open and ready to receive cargo diverted from congested seaports. Savannah is now seeing backlog problems similar to those in LA/Long Beach.
“Our ports operate 24/7. … We’re here. We have capacity,” DeSantis said.
“We want to be sure that Americans get the goods they need, particularly as we approach the Christmas season,” DeSantis continued.

Bottleneck at California ports
On October 28, Port Envoy John Porcari announced the Emerging Projects Agreement, a plan to develop and fund supply chain infrastructure projects backed by the federal government and state of California. The plan did not specify the projects but instead lays out the framework to address everything from port congestion to federal funds to update highways, ports, and inland warehousing attached to rail.
“We’re setting the stage for projects that will eliminate bottlenecks and improve the flow of goods,” California State Transportation Agency Secretary David Kim said.
AJOT: Biden Port Envoy vows alliance will help break California logjam

Pajama Drive for His House
Join WTDC in our 7th annual Pajama Drive for His House Children’s Home. Until December 17, we will be collecting new boys and girls Youth Size Small to XL and boys and girls adult sizes X-Small to XL. Donations can be dropped off to WTDC Suite 217, WTDC Customer Service office in the warehouse, or list Ginger Diez/PJ Drive with WTDC address for mailed donations.