Wine imports from France and Italy to the U.S. will become more expensive due to the new 15% tariff on European Union goods. A bottle that previously cost $11.50 in the U.S. may now retail for up to $15, while premium wines such as those priced at $30 or more are also expected to see significant increases, according to The Mirror.
While Donald Trump asserts that he is actively negotiating trade tariffs, stakeholders in the wine industry have expressed dissatisfaction over the recent developments.
Ben Aneff, the president of the U.S. Wine Trade Alliance (USWTA), stated that the recent 15% tariff on wine imports from the European Union will increase the price not only on imported bottles but also on domestically produced wines.
An increase in demand may subsequently drive up prices across the U.S. wine market as consumers shift toward domestically sourced wines.
Wine industry trade groups are actively lobbying for the removal of wine from the list of goods subject to tariffs. Meanwhile, the White House has not yet clarified how these tariffs might affect the domestic wine industry.
Furthermore, other stakeholders in the U.S. wine sector warn that the tariff increase could disrupt the long-established system of wine importation, distribution, and retailing—an infrastructure that has been in place since the early days of the Great Depression—while offering little in terms of export opportunities for American wineries.
The tariff hike could severely impact tens of thousands of small businesses across the U.S., including roughly 4,000 wine importers and distributors, 50,000 wine retailers, and more than 350,000 restaurants. Even domestic wine producers may be affected, as they rely on the same distribution channels used for imported wines.
Wine sales are particularly vital for restaurants, often yielding higher profit margins than most other food and beverage items.
The USWTA is also calling on U.S. trade officials to exempt wine from the list of goods affected by the new U.S.-EU trade agreement.
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