The United States might soon see a dramatic shift in its wine market. A potential 200% tariff on European wines, Champagne, and spirits has wine sellers and importers worried. This tariff could make European wines too expensive for many Americans. The threat comes as a response to a planned 50% tariff on American whiskey by the European Union.

Wine sellers and importers are already feeling the heat. Many rely heavily on European wines. A 200% tariff could shut down the European wine business in the U. S. This would hurt both European and American wine industries.  Wine and spirits from the European Union made up 17% of the total consumed in the U. S. in 2023. Italy and France are the biggest contributors. The U. S. imports much more alcohol than it exports. In 2022, the U. S. imported $26. 6 billion worth of foreign-produced alcoholic beverages. This accounted for 14% of all U. S. agricultural imports. The U. S. exported $3. 9 billion worth of beer, wine, and distilled spirits that year.

The impact of such a high tariff is not unprecedented. In 2020, China imposed tariffs as high as 218% on Australian wine. This caused exports to plunge by 90%. The Australian wine industry took a big hit. Europe's tax on American whiskey is expected to go into effect on April 1. This tax is in response to the Trump administration’s steel and aluminum tariffs. The reaction from Europe has been swift. Many worry about a global trade war. This could lead to higher prices for products and hurt farmers.

Some U. S. wine stores saw an opportunity. In Washington, the wine bar Cork announced a tariff sale. They encouraged regulars to stock up on their favorite wines while they’re still affordable. Others wondered if the tariff would really happen. European wines make up around 35% of sales at some stores. Some stores chose to stay out of the fray. Total Wine and Southern Glazer’s Wine & Spirits did not respond to requests for comment.

TRADE WAR IMPACT

Wine Wars: What a 200% Tariff Means for Your Favorite Bottle

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