US President Donald Trump has threatened a 200% tariff on European wine, champagne, and spirits, sparking uncertainty among small businesses. The proposed tariff is a response to the European Union’s planned 50% tariff on American whiskey.
The US currently has tariffs in place on goods from Mexico and Canada, with a 25% rate on most imports that went into effect on March 4. Small business owners like Kevin Cary of Begyle Brewing in Chicago are feeling the pinch.
Cary’s brewery relies on Canadian barley for around 200,000 pounds each year, but the tariffs would significantly hurt his margins. He also faces another expense with a 25% tariff on steel and aluminum imports, which he uses to produce about 1 million cans annually.
The back-and-forth between Trump’s administration and European leaders is leaving Cary confused, as it makes it difficult for him to plan and manage his business. “It’s hard when you’re managing any business to not really know what you’re going to do in a month or three months or a year,” he said. The new tariff on European wine is expected to take effect on April 1.
Source: https://www.newsnationnow.com/business/your-money/trump-tariffs-uncertainty-brewery-owner