Trump says that 200% tariffs on European alcohol are “great” for American companies, but wine sellers say it bashes the entire industry.
The US suddenly appears to be unfurl towards European wine.
President Donald Trump Thursday Threatened 200% tariffs If the European Union advances the planned 50% tariffs on American whiskey, then on European wines, champagnes and spirits. Wine sellers and importers said that tariffs of that size would essentially close the US European wine business
“We’re looking forward to seeing you in the process of exploring the world,” said Ronnie Sanders, CEO of Vine Street Imports in Laurel Township, New Jersey.
Jeff Zacharia, president of Zachie, Portchester, New York, fine wine retailer, said 80% of the wine he sells comes from Europe. Importers rely on European wine for the majority of their power distribution systems, he says, and we don’t have enough of our wine to make up for it.
“This only has a major negative impact on the entire US wine industry in all aspects, including US wineries,” he said.
Zacharias said there are so many unknowns now that they have stopped buying European wine until the photos become clearer.
“It’s very difficult to prepare when you’re not on a clear path as a business,” he said. “Our preparation is very different when it’s 200% compared to 100%.”
wineAccording to IWSR, a global data and insight provider specializing in alcohol, the 27-nation European Union spirit accounts for 17% of all US consumption in 2023. Of that 17%, Italy accounted for 7% (mainly from wine), while French wine, cognac and vodka accounted for 5%.
Overall, the US imports far more alcohol than it exports. According to the US Department of Agriculture, the $26.6 billion worth of diplomatic alcoholic beverages that entered the country in 2022 account for 14% of all US agricultural imports. The US exported $3.9 billion worth of beer, wine and distillation spirit that year.
Marten Lodewijks, president of IWSR US, said that 200% tariffs are not unprecedented, but import tariffs of that magnitude tend to be more targeted.
In 2020, China imposed a high tariff on Australian wine at 218%, increasing exports by 90%, Lodewijks said. ChinaCustoms duty has been liftedLast year, however, by then, the Australian wine industry was a huge hit.AustraliaThe wine trade to China was worth $1.1 billion ($710 million) a year by the time tariffs were introduced.
European taxesAmerican whiskeyIt was announced in response to the Trump administration.Steel and Aluminum TariffsI’m planning to goIt will come into effect on April 1st. Trump responded in a social media post Thursday.
“If this tariff is not removed immediately, the US will soon place a 200% tariff on all wines, champagne and alcoholic products representing France and the other EU,” Trump wrote.
Trump was wrongChampagnework. Champagne is a legally protected wine that only comes from the Champagne region of France. But US winemakers, including Trump Winery, a Virginia winery owned by the president’s son, Eric Trump, make sparkling wines.
Reactions from across the Atlantic were quick on Thursday.
“We must stop the dangerous escalations leading to the World Trade War. The first victims are US citizens who pay more for the product and will be with the farmers along with them,” said Ettore Prandini, president of Coldiretti Agriculture Lobby in Italy.
Italian wine exports to the US –Prosecco is led– The value has tripled over the past 20 years, reaching 1.9 billion euros ($2.1 billion) last year. In France, the US market for wine and spirits is worth 4 billion euros ($4.3 billion) a year.
Gabriel Picard, who heads the French Federation of Wine and Spirits Exporters, said the 200% tariff would be a “hammer blow” for the French alcohol export industry, affecting hundreds of thousands.
“If our products have a 200% tariff, a single bottle will continue to be expedited. All exports to the US will be total, total and halted,” Picard said in an interview with the Associated Press.
French transporter grain desert, usedSale PowerTo ship wine and other items throughout the Atlantic, some winemakers said Thursday that they had already cancelled scheduled wine shipments to the US as they anticipated tariffs even before Trump’s announcement.
“There’s more or less frozen exports. Jack Burrow, the company’s co-founder, said:
Some US wine shops had the opportunity on Thursday. In Washington, wine bar Cork announced a tariff sale, encouraging patrons to stock their favorite wines while they are still affordable.
Others wondered loudly whether Trump would really experience 200% tariffs.
“That changes over time now, right?” Mark O’Callaghan, founder of Exit 9 Wine & Liquor Store in Clifton Park, New York, said he accounts for about 35% of his store’s sales.
Others seemed to want to leave the conflict. Total Wine, which operates 279 stores in 29 US states, did not respond to a request for comment Thursday.Southern Glazer’s Wine & Spiritsone of the nation’s largest alcohol distributors, did not respond to messages seeking comment.
This story was originally introduced Fortune.com