The United States suddenly looks less bubbling for European wines.
President Donald Trump Thursday threatened A 200% rate On European wine, champagne and spirits if the European Union advances with a 50% planned rate on the American whiskey. Wine vendors and importers said a rate of that size would essentially close the European wine business in the United States.
“I don’t think customers are prepared to pay two or three times more for their favorite wine or champagne,” said Ronnie Sanders, CEO of Vine Street Import in the municipality of Laurel, New Jersey.
Jeff Zacharia, president of the Fine Zachys wines retailer in Port Chester, New York, said 80% of the wine is from Europe. Importers depend on European wines for a large part of their distribution system, he said, and there is not enough American wine to compensate for that.
“This will only have a great negative impact on the entire United States wine industry in all aspects, including US warehouses,” he said.
Zacharia said there are so many unknowns at this time that he has stopped buying European wine until the image becomes clearer.
“It is very difficult to make preparations when you don’t have a clear path,” he said. “Our preparations would be very different if it is 200% compared to 100% compared to 10%.”
Came And the spirits of the European Union of 27 nations represented 17% of the total consumed in the United States in 2023, according to IWSR, a global supplier of data and alcohol specialized information. Of that 17%, Italy represented 7%, mainly of the wine, and the French wine, the cognac and the vodka represented 5%.
In general, the United States imports much more alcohol than exports. The $ 26.6 billion in alcoholic beverages produced abroad that entered the country in 2022 represented 14% percent of all agricultural imports in the United States, according to the United States Department of Agriculture. The United States exported $ 3.9 billion in beer, wine and distilled spirits that year.
Marten Lodewijks, president of IWSR US, said that a 200% tariff would not have precedents, but import tariffs of that size tend to be more attacked.
In 2020, China imposed tariffs up to 218% in Australian wine, which caused exports to immerse 90%, Lodewijks said. Porcelain He raised his rates Last year, but by then the Australian wine industry had received great success. Of Australia Wine trade to China was worth 1.1 billion Australian dollars ($ 710 million) annually before tariffs were implemented.
Europe’s tax on American whiskeywhich was released in response to the Trump administration Steel and aluminum tariffsIt is expected to leave In force on April 1. Trump responded on Thursday in a publication on social networks.
“If this rate is not immediately eliminated, the United States will soon give a 200% tariff on all wines, champagnes, AND Alcoholic products that leave France and other countries represented from the EU, ”Trump wrote. “This will be excellent for wine and champagne businesses in the United States”
Trump was incorrect about The champagne business. Champagne is a legally protected wine that can only come from the Champagne region of France. But American winemakers, including Trump Winery, a virginia winery owned by President Eric Trump’s son, make sparkling wine.
The reaction of the Atlantic was Swift Thursday.
“We must stop a dangerous escalation that is leading to a global commercial war where the first victims will be US citizens who will pay more for the products, and with them, the farmers,” said Ettore Prandini, president of the Agricultural Lobby of Coldiretti of Italy.
Italian wines exports to the United States – Directed by Prosecco – They have tripled value in the last 20 years and reached 1.9 billion euros ($ 2.1 billion) last year. In France, the US market of wines and spirits is worth 4 billion euros ($ 4.3 billion) annually.
Gabriel Picard, who runs the French Federation of Wine Exporters and Spirits, said that 200% of tariffs would be “a hammer blow” for the alcohol exports industry in France, impacting hundreds of thousands of people.
“Not a single bottle will continue to be accelerated if 200% tariffs are applied to our products. All exports to the United States will reach a total, total and will stop, ”said Picard in an interview with Associated Press.
French transporter Grain de Sail, who uses Sailing power To send wines and other products throughout the Atlantic, said Thursday that some winemakers had already canceled planned wine shipments to the United States because they anticipated tariffs even before Trump’s announcement.
“It has more or less frozen exports. It does not even make sense to wait to send wine to the United States in these conditions, “said Jacques Barreau, co -founder of the firm.
Some US wines stores saw a chance on Thursday. In Washington, the bar rack announced a sale of rates, encouraging usual customers to reach their favorite wines while they are still affordable.
Others wondered aloud if Trump would really happen with a 200%tariff.
“Change per hour now, right?” Mark O’Callaghan, the founder of departure 9 of the wine AND The liquor warehouse in Clifton Park, New York said. European wines represent about 35% of sales in their store, he said.
Others seemed to want to stay out of the fray. Total Wine, which operates 279 stores in 29 US states, did not respond to a comment application on Thursday. Southern Glazer wine AND SpiritOne of the largest alcohol distributors in the country, also did not respond to a message in search of comments.
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Anderson reported from New York. Durbin reported from Detroit. AP Colleen Barry writers in Rome, John Leicester in Paris and Zeke Miller in Washington contributed.
