The United States suddenly see less bubble for European wines.
President Donald Trump on Thursday threatened a tariff of 200% On European wine, champagne and spirits when the European Union progresses with a planned 50% tariff for American whiskey. Wine sellers and importers said that a tariff of this size would essentially close the European wine business in the United States
“I don’t think customers are willing to pay two to three times more for their favorite wine or their favorite champagne,” said Ronnie Sanders, CEO by Vine Street Importe in Mt. Laurel Township, New Jersey,.
Jeff Zacharia, President of the Fine Wine single dealer Zachys in Port Chester, New York, said 80% of the wine he sold from Europe. The importers are dependent on European wines for a large part of their distribution system, he said, and there are not enough US wine to compensate for it.
“This will only have a major negative impact on the entire US wine industry in all aspects, including the wineries,” he said.
Zacharia said there are so many strangers at the moment that he has stopped buying European wine until the picture becomes clearer.
“It is very difficult to make preparations if you as a company have no clear way forward,” he said. “Our preparations would be very different if you were 200% compared to 100% compared to 10%.”
WineAccording to IWSR, an alcohol specializing in global data and insight providers, which used up in the United States in 2023 in the United States in 2023, spirits from the 27-nation-European Union made 17% of the total amount consumed in the USA. Of these 17%, Italy identified 7% – mainly from wine – and French wine, cognac and vodka made 5%.
Overall, the United States imports much more alcohol than it exports. According to the US Ministry of Agriculture, 14 percent of all U.S. Ministry of Agriculture accounted for the $ 26.6 billion in the value of foreigners who entered the country in 2022. This year the United States exported beer, wine and distilled spirits worth 3.9 billion US dollars.
Marten Lodewijks, President of IWSR US, said a tariff of 200% was not unprecedented, but the import duties of this size tend to be stronger.
In 2020, China imposed tariffs of up to 218% to Australian wine, which led to exports storming by 90%, said Lodewijks. Chinaincreased the tariffsLast year, but until then the Australian wine industry had achieved great success.AustraliaThe wine trade in China was worth $ 1.1 billion annually (710 million US dollars) before the tariffs were introduced.
Europe’s taxAmerican whiskeyWhat was presented in response to the Trump governmentSteel and aluminum tariffsis expected that it will goIn force on April 1. Trump replied on Thursday in a social media contribution.
“If this tariff is not removed immediately, the United States will soon rely on a tariff of 200% on all wines, champagne and alcoholic products from France and other EU transferred countries,” wrote Trump.
Trump was wrongThe champagneBusiness. Champagne is a legally protected wine that can only come from French champagne region. But US -Winzer – including Trump Winery, a Virginia winery that belongs to the son of President Eric Trump, make sparkling wine.
The reaction from the Atlantic was quick on Thursday.
“We have to stop a dangerous escalation that leads to a global trade war in which the first victims will be US citizens to pay more for products and with them,” said Ettore Prandini, President of the Italian Coldiretti Agriculture Lobby.
Italian wine exports to the USA –Led by Prosecco– The value triples over the past 20 years and has reached 1.9 billion euros last year ($ 2.1 billion). In France, the US market for wines and spirits is worth 4 billion euros annually (4.3 billion US dollars).
Gabriel Picard, who heads the French Federation of Exporters of Wines and Spirits, said 200% tariffs were “a hammer strike” for the French alcohol export industry and affect hundreds of thousands of people.
“Not a single bottle continues to be accelerated if 200% tariffs are applied to our products. All exports to the United States will come as a whole, overall and to hold, ”said Picard in an interview with the Associated Press.
French transporter Grain de SailSailing forceIn order to send wines and others throughout the Atlantic, said on Thursday that some winemakers had already canceled planned wine deliveries to the United States before Trump’s announcement.
“It has more or less frozen exports. It makes no sense to send wine to the United States under these conditions, ”said Jacques Barreau, co -founder of the company.
Some US wine transactions saw an opportunity on Thursday. In Washington, the Wine Bar Cork announced a tariff sale and encouraged the regular guests to provide themselves with their favorite wines while they are still affordable.
Others wondered loudly whether Trump would really do a 200% tariff.
“It changes an hour now, right?” Mark O’Callaghan, the founder of Wine & Spircor Warehouse in Clifton Park, New York.
Others seemed to stay out of the fight. Total Wine, who runs 279 shops in 29 US states, did not answer on Thursday when asked for a comment.Wine & spirits from Southern GlazerOne of the country’s largest alcohol distributors did not respond to a message that was looking for a comment.
This story was originally on Fortune.com
