President Donald Trump’s recent threat to impose a 200% tariff on European wine, Champagne, and spirits has raised alarms among wine sellers and importers, who warn that such a move could have significant consequences for both European and US alcohol industries.
The proposed tariff comes in response to the European Union’s plan to introduce a 50% tariff on American whiskey. In a social media post, Trump argued that his proposed measure would benefit US wine and Champagne businesses. However, industry experts and wine sellers disagree, emphasizing that the impact would extend far beyond European producers.
Wine sellers say a tariff of this magnitude would effectively shut down the European wine business in the US Ronnie Sanders, CEO of Vine Street Imports in New Jersey, noted that customers are unlikely to pay two to three times more for their favorite European wines. Similarly, Jeff Zacharia, president of fine wine retailer Zachys in New York, highlighted that 80% of his sales come from European wines and that US wineries cannot produce enough to compensate for the potential loss.
“This is just going to have a major negative impact on the whole US wine industry in all aspects of it, including US wineries,” Zacharia warned.
Wine and spirits from the 27-nation European Union accounted for 17% of total alcohol consumption in the US in 2023, with Italy and France being the leading suppliers. European wine exports to the US are a multi-billion-dollar industry, with French and Italian wines making up a significant portion of the market.
A tariff of 200% would dramatically increase prices, making European wines far less accessible to American consumers. Historical precedents show that such high tariffs can lead to severe market disruptions. In 2020, China imposed tariffs as high as 218% on Australian wine, causing a 90% drop in exports. Many fear that a similar outcome could unfold for European producers exporting to the US.
European officials and industry representatives have reacted strongly to the proposal. Ettore Prandini, president of Italy’s Coldiretti agriculture lobby, warned of the risks of a trade war, stating that the first victims would be US consumers and farmers. In France, Gabriel Picard, head of the Federation of Exporters of Wines and Spirits, described the tariffs as a “hammer blow” that could halt exports entirely.
French wineries, which rely heavily on the US market, have already started feeling the effects of the uncertainty. Some winemakers have canceled shipments in anticipation of the tariffs, while others are scrambling to find alternative markets.
For American wine businesses, the uncertainty surrounding the tariff makes it difficult to plan ahead. Mark O’Callaghan, the founder of Exit 9 Wine & Liquor Warehouse in New York, said that European wines make up about 35% of his store’s sales.
“It changes by the hour now, right?” he remarked.
O’Callaghan expressed frustration over the lack of clarity.
While some US wine sellers see an opportunity to promote domestic products, many argue that the industry as a whole—including American wineries—would suffer from the disruption. Industry leaders stress that wine importers, distributors, retailers, and restaurants all depend on a stable supply of European wines.
Trump’s proposal is not yet finalized, and negotiations between the US and the EU are ongoing. Some experts believe the tariff threat may be a negotiating tactic rather than a definitive policy move. Florence Cathiard, owner of Bordeaux’s Chateau Smith Haut Laffite, expressed hope that the threat is merely a bargaining strategy rather than an actual plan that would take effect.
The EU’s planned 50% tariff on American whiskey, set to take effect on April 1, remains the key issue driving tensions. If no agreement is reached, both sides could move forward with retaliatory tariffs, escalating trade conflicts that could impact businesses and consumers alike.
Fortune, the New York Times, and US News & World Report contributed to this report.
