The Trump administration’s announcement today of sweeping tariffs on global imports is expected to have significant repercussions for the wine industry. Set to take effect at midnight, these tariffs will not only reduce consumer choice but could put many American wine businesses at risk.
According to the administration, the tariffs are intended to boost U.S. manufacturing and address long-standing trade imbalances by levying costs on foreign businesses. However, critics across the political spectrum—including sources like the Wall Street Journal and Nobel Prize-winning economist Paul Krugman—argue that the policy could be harmful to both the U.S. economy and consumers. As the Wall Street Journal editorialized on March 31, “The President’s ideological fixation on tariffs is crowding out rational judgments about the consequences.”
Tariffs’ Impact on Wine Imports
The tariffs, which will apply to all U.S. trading partners, are particularly severe for wine-producing countries. The European Union, for example, faces a 20% tariff on wine imports, while South Africa will be subject to a steeper 30%. The tariffs will increase costs for U.S. importers, who are responsible for paying the fees when goods reach U.S. ports.
Harmon Skurnik, co-owner of Skurnik Wines & Liquors, a New York-based importer, warns that the 20% tariff will lead to higher prices for imported wines, reducing their affordability for U.S. consumers and potentially decreasing sales. “Wines and spirits are not ‘fungible’—they’re not commodities like steel or aluminum,” Skurnik noted, emphasizing that such tariffs would hurt wines that are inherently tied to specific regions, like French Chablis or Italian Barolo. While a 20% tariff might not cause widespread rejection, it will still be damaging, and the threat of an even more extreme 200% tariff remains a concern, with a decision on that matter expected by April 14.
Immediate Consequences for U.S. Importers
With tariffs set to hit immediately, many importers are scrambling to adjust. Jeff Kellogg, founder of Jeff Kellogg Selections, a North and South Carolina wholesaler, revealed that his company’s plan is to increase the price of affected wines by 10% to offset the impact of the tariffs. However, this price hike will apply across the board, including on domestic wines, as the company aims to avoid isolating its imported stock.
These tariffs are expected to create a ripple effect throughout the wine industry. Ben Aneff, president of the U.S. Wine Trade Alliance, explained that every dollar spent on imported wine generates approximately $4.52 in revenue throughout the U.S. supply chain. From importers to wholesalers, restaurants, retailers, and consumers, the U.S. wine business employs countless individuals. In 2024, Americans spent $31.6 billion on imported wine, supporting a vast network of businesses across the country.
Potential Fallout for U.S. Wineries and Consumers
Although proponents of the tariffs argue they might benefit U.S. wineries, a trade war, as indicated by recent actions such as Canadian liquor stores pulling U.S. wines, is unlikely to offer a clear advantage. For example, U.S. restaurants that rely on European wines to fill their menus would face difficulty replacing well-known varieties like Chianti with California Cabernet.
Ultimately, the tariffs threaten to cause financial strain for U.S. wine businesses, job losses in the sector, and higher prices and fewer options for consumers. Skurnik cautioned, “Is this a world that any of us want to live in? Restricted choices and forcing consumers to drink only American wine? Freedom of choice for the American consumer has been a way of life for my entire life. We give away this freedom at our own peril.”
The full impact of these tariffs remains to be seen, but one thing is clear: American wine lovers could soon be paying significantly more for their favorite imports.
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