MATTITUCK, Long Island (WABC) — Local businesses across Long Island, including wineries, liquor stores, and restaurants, are adjusting their operations to cope with the unpredictable effects of the ongoing trade war. With daily changes in tariffs, many are struggling to navigate the financial uncertainty, including Macari Vineyards, a longstanding family-run winery on Long Island’s North Fork.
For three generations, Macari Vineyards has weathered various challenges, but now the winery faces new obstacles due to a recent proposal by President Donald Trump to impose a 200% tariff on European wines. The move is part of his efforts to support domestic wine production, but local industry leaders, like Gabriella Macari, are questioning the proposed benefits.
“This is a major misconception that it’s a good thing,” Macari said. “The American wine industry is a very delicate ecosystem. When our retail and restaurant partners are hurting, we’re hurting as well.”
The potential tariffs come on the heels of the European Union’s plans to retaliate against the U.S. with tariffs on American goods, including a 50% levy on U.S. whiskey. These developments stem from escalating tensions surrounding U.S. tariffs on imported steel and aluminum. The consequences of these international trade disputes are reverberating through Long Island’s hospitality sector.
Dorothy Roberts, director of the Long Island Hospitality Association, expressed concern about the lack of clarity in the business environment. “If you don’t know exactly what’s happening, how are you preparing your budgets?” she said.
The uncertainty is particularly challenging for the region’s more than 50 wineries, which are already dealing with volatile weather and labor shortages as the busy season begins. For businesses like One Kourt Wine Shop in Greenport, which sources 70% of its wine from Europe, the threat of increased costs could hit consumers hard. Owner Tyler Armstrong fears the price hikes could force him to raise retail prices, making some bottles of wine unaffordable.
“I hope I wouldn’t be paying $60 a bottle for a wine I pay $20 a bottle for now, because that would mean a $30 bottle of wine could cost $90 for the consumer,” Armstrong said.
As the trade war continues to unfold, local businesses are left in limbo, hoping for stability and a resolution that will allow them to plan for the future without further disruption.
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