President Donald Trump has escalated his rhetoric, threatening a 200% tariff on European wine, champagne, and spirits if the European Union makes good on its promise to tax American whiskey at 50%. This move could virtually end imports of European wine into the US, putting thousands of bottles already en route across the Atlantic Ocean in jeopardy.
Roanoke Valley Wine Company, which distributes wine to around 140 restaurants and stores in Baltimore, is stockpiling wine in anticipation of the tariffs. However, managing sales in Maryland for the company, John Coco, fears that a 200% tariff would be “devastation” for his employer, which could face significant financial losses.
Industry experts warn that such a steep tariff could put wine importers out of business, with some estimating costs of up to $100,000 on top of existing shipments. Russ Lorber, owner of Baltimore-based importer Wide Roots, said that paying an unexpected $100,000 would be impossible and has delayed placing additional orders.
The US wine market is already facing a dismal projected sales outlook for the year, exacerbated by inflation and previous tariffs imposed by the Trump administration in 2019. A new tariff could spell “disaster” for businesses like The Wine Source, where prices have never really come down again after the previous tariffs were imposed.
Restaurateurs and retailers may consider boosting their selection of domestically produced wines if tariffs are implemented, but American winemakers also face concerns about retaliatory tariffs on imported equipment and raw materials. Industry experts weigh in on the potential impact of Trump’s tariff proposal on the US wine industry.
Source: https://www.thebaltimorebanner.com/culture/food-drink/trump-tariff-european-wine-alcohol-MDL6BFAWA5BHNPUNOXUEY4AHSM