US President Donald Trump has proposed a 200% tariff on all wine, Champagne, and other alcoholic products from the European Union, sparking concerns among California winemakers. The move would significantly increase the cost of imported wine for American consumers.
Many US-based wine producers, such as Frog’s Leap in Napa Valley, are worried that the tariffs could disrupt their business. John Williams, founder of Frog’s Leap, fears that the tariffs will hurt distributors and small businesses, which rely on them to sell their products. He also expressed concerns about the impact on exports to Canada, another country affected by US trade policies.
On the other hand, some larger wine corporations may benefit from the tariffs, as they can claim refunds for duties paid on imported items when exporting similar products. However, smaller businesses may struggle due to the higher cost of imports and potential business interruptions.
Not all winemakers are pessimistic about the impact of Trump’s proposal. Bruce Lundquist, co-founder of Rack & Riddle, believes that the tariffs could boost interest in domestically produced sparkling wines. However, he also acknowledges that a 200% tariff on Champagne imports would be devastating for the market.
The proposed tariffs mark another escalation in the growing trade spat between the US and EU. The European Union has responded with its own countermeasures, including a 50% tariff on American whiskey. As tensions continue to rise, it remains to be seen how this development will affect the wine industry and the broader economy.
Source: https://edition.cnn.com/2025/03/22/economy/tariff-eu-trade-war-california-wine/index.html