President Trump has threatened a 200% tariff on alcohol coming out of the E.U.
Transcript:
Caroline Woods: Alcohol was already getting more expensive thanks to newly imposed tariffs, but the ongoing trade war between the U.S. and European Union is only making it worse.
After President Trump implemented a 25% tariff on aluminum and steel on March 12, the E.U. immediately retaliated with a 50% tariff on U.S. spirits. Now, Trump is threatening to hit them back four-fold.
In a post on his Truth Social platform, the President said “If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.”
The United States currently buys half of its wine from the European Union, with both Italy and France sending more than $2 billion worth of exports to the states in 2024. It also imports 23% of its distilled spirits and 14% of beer from the region.
However, Trump claims only good can come from the potential retaliation, posting “This will be great for the Wine and Champagne businesses in the U.S.”
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2 Comments
Let's be clear about a couple of things:
Thinking that a tariff is going to disrupt the import wine & spirits market just shows that you know absolutely nothing about the market.
As a sommelier who's worked in the wine industry for many years, I can tell you that price is a very minor consideration for most wine collectors and connoisseurs if they consider it at all.
Does a collector who's willing to pay $500 or more for a 25 ounce beverage care if there are a few extra dollars tacked on? In my experience, no.
Many of them are proud of how much they paid for that bottle. It's a luxury item and a status symbol. They'll continue to buy their preferred labels, just like their preferred luxury automobile brand, regardless of price.
Add to that the fact that European wines are typically more affordable than their not-so-chiq American counterparts (often by as much as 100%) to begin with and even a 200% tariff barely moves the needle.
I'd put a 2000% Tariff on it. I'd put the same tariff on EVERYTHING that's not made here and I'd also ban ALL CHINESE products and Mexican made GARBAGE.