As the United States considers imposing steep tariffs on European alcohol imports, a warehouse in the French port of Le Havre holds over 1,000 cases of wine, awaiting shipment to the U.S. These wines, sourced from boutique wineries across France, now face an uncertain future.
Under normal circumstances, Randall Bush, founder of Chicago-based Loci Wine, would have already coordinated the shipment of these wines across the Atlantic. However, following the Trump administration’s announcement on March 13 of a potential 200% tariff on European alcoholic beverages, Bush and other U.S. importers have halted all incoming shipments.
Bush’s inventory—1,100 cases of wine from family-run European producers—has already been paid for. Yet, due to the looming tariff risk, the wine remains stranded at its respective domaines, awaiting an official decision expected on April 2, when the administration plans to reveal reciprocal tariff rates for global trade partners.
Widespread Industry Concern
The uncertainty surrounding the tariffs has unsettled restaurant owners, beverage directors, distributors, and importers. Industry professionals agree that a 200% tariff would be devastating for the global wine and spirits sector. Even a lower tariff could significantly disrupt supply chains and push prices higher.
“What concerns me most is how these potential tariffs could impact European-themed restaurants like French bistros, Italian trattorias, and German beer halls,” said Richard Hanauer, wine director and partner at Lettuce Entertain You, a Chicago-based hospitality group managing over 130 restaurants across multiple states. He warned that many concept-driven eateries relying on European products would be forced to source alternatives, as consumers may reject steep price increases.
Despite former President Donald Trump’s history of retracting tariff threats, the wine and spirits industry is treating this latest warning seriously. The U.S. Wine Trade Alliance (USWTA) advised its members in mid-March to halt all shipments from Europe to avoid being hit with unexpected costs.
“Once the wine is on the water, we lose control,” Bush explained. “We get billed by our shipping companies as soon as the wine lands.”
Since shipments from Europe can take six to eight weeks to arrive, importers like Bush risk severe financial losses if the tariffs are enacted during transit. Even a 50% tariff could bankrupt many small businesses, warned USWTA President Benjamin Aneff.
Economic Fallout on Both Sides of the Atlantic
European wineries are also bracing for potential financial strain. The U.S. accounts for nearly 20% of the European Union’s wine exports, with $14.1 billion in alcoholic products shipped to the U.S. in 2024, according to the International Trade Center.
This is not the first time U.S.-EU trade tensions have impacted the wine industry. In 2019, Trump imposed $7.5 billion in tariffs on EU exports, including 25% duties on Scotch whisky, Italian cheeses, and French wines, amid a long-standing dispute over airline subsidies. Though the Biden administration rescinded those measures in 2021, industry players fear history could repeat itself.
“Back in 2019, we negotiated with suppliers to prevent major price hikes,” said André Tamers, founder of fine-wine importer De Maison Selections. “But the pandemic hit soon after, making it difficult to assess the true impact of those tariffs.”
Stockpiling in Anticipation
To mitigate potential disruptions, many bars and restaurants are ramping up their wine and spirits purchases while prices remain stable. “We made significant commitments for rosé season,” said Grant Reynolds, co-founder of Parcelle, a New York-based wine retailer and bar. “We’re securing stock now to better withstand the storm.”
Cocktail bars are also stockpiling premium spirits, such as Scotch whisky and rare cognacs, which could be subject to tariffs. “If these tariffs take effect, we may need to invest up to $100,000 in inventory to save costs over the next six months,” said Deke Dunne, beverage director at Allegory, a renowned Washington, D.C. cocktail bar.
Meanwhile, some businesses remain insulated from the crisis. Fred Beebe, co-owner of Philadelphia’s sustainability-focused cocktail bar Post Haste, exclusively stocks U.S.-made spirits. “We always prioritized local sourcing for environmental and economic reasons,” Beebe said. “We didn’t anticipate that it would also protect us from global trade instability.”
A Challenging Time for the Wine Industry
The U.S. wine market has already been facing declining sales as younger consumers shift toward hard seltzers, spirits, cannabis, or sobriety. “Wine consumption was already down before this,” said Reynolds. “New tariffs would only accelerate that trend.”
Despite the challenges, small importers like Tamers remain committed to their European suppliers. “It’s a double-edged sword,” he said. “If we stop buying, we have no wine to sell. Our customers still demand these products, so we have to find a way.”
Industry leaders hope for a diplomatic resolution that excludes alcohol from broader trade disputes. “A sectoral agreement on wine and spirits could benefit both American and European producers,” Aneff noted. “Ensuring free trade in wine would be a win for businesses and consumers alike.”
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