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The tariffs announced by US President Trump on foreign wines will cause significant economic damage in the US as well. According to US media, the wine industry, the gastronomy sector, and wine enthusiasts in the US are facing substantial price increases. The selection of wines on the shelves of retailers and on restaurant wine lists will shrink. Ultimately, customers and guests will have to "bear the brunt of these changes," fears the US Association of Wine and Spirits Wholesalers (WSWA).
The chief wine critic of the New York Times (NYT), Eric Asimov, expects that prices for all wines affected by the tariffs will rise. "How much depends on whether the chain of importers, wholesalers, retailers, and restaurants absorbs some of the additional costs," explains Asimov. Under US law, alcohol manufacturers must sell their products to importers or wholesalers, who then resell them to bars and restaurants. Direct sales to consumers are prohibited for producers. "Pretty much everyone in the American wine industry has something to lose. Who benefits is unclear," says Asimov.
Stephen Rannekleiv, a beverage specialist at Rabobank, also believes that the tariffs will lead to rising wine prices and a decline in wine consumption in the US. While the tariffs may help US wine producers reduce their current surplus in the short term, "the net effect of Trump's policy will be to raise prices," emphasizes Rannekleiv.
American wine merchants and restaurateurs currently describe uncertainty as the biggest problem. Following Trump's tariff announcement, many of them canceled orders from Europe. Retailers are considering, together with importers and producers, how to absorb the higher costs. Suppliers are willing to compromise, says wine merchant Carson Demmond from Georgia to the NYT. "But these are also small businesses that operate with thin profit margins, and they need the money," she adds.
Industry associations in the US and the EU are calling on politicians to negotiate. Among them are the European Association of Wine Companies (CEEV) and the Association of German Wine Exporters (VDW). The French Association of Wine and Spirits Exporters (FEVS) warns that the 20 percent tariffs could reduce the value of French exports to the US by about 800 million and the total value of EU wine deliveries by 1.6 billion euros. The producers' association for wines with controlled designation of origin (CNAOC) estimates the net loss for the French wine industry due to the tariffs at one billion euros. CNAOC President Jérôme Bauer calls the 20 percent rate "unbearable for French viticulture.".
The President of the US Wine Trade Alliance, Ben Aneff, calls Trump's tariffs "a disaster for small businesses. We import wine worth about 4.5 billion US dollars from the EU, and US companies earn nearly 25 billion US dollars from these imports. This hole cannot be filled," says Aneff. Trump's tariff policy will harm US wine companies more than their foreign counterparts.
More on the topic:
US tariffs threaten some Italian wine regions existentially
US punitive tariffs of 20 percent on EU wine imports
Donald Trump's election victory makes the wine industry tremble
(cs / The New York Times / Reuters / France24 / Decanter / Franceinfo / Press releases)