Proposed Tariffs May Spike European Wine Prices, U.S. Distributors Fearful of Impact

A series of proposed tariffs on European goods has the U.S. wine importer and distributor industries nervous about the next year. If enacted this month, the 100 percent increase in taxes on the product would make many European bottles very difficult to sell.

The tariffs were proposed as a response in an escalating tension between President Donald Trump’s administration and the European Union. It began with a 25 percent tariff on certain products from France, Britain, Germany and Spain, including some wines. But in December, during a dispute over subsidies to the airline Airbus, the U.S. Trade Representative proposed new, broader tariffs on many more European goods.

“The tariffs could range anywhere from zero to 100 percent,” says Todd Wielar, the owner of the Chapel Hill Wine Company. “We don’t know what they’re going to do.”

Wielar says his business is already seeing nervousness over whether the penalties will truly be enacted.

“All of my importers have put a hold on any ordering, that’s already an immediate effect,” he says. “For example, I had an order of some wine from Italy that was due to ship in January and the importer told me, ‘It’s not shipping, it’s on hold.’”

Wielar’s company has been in the community since 2002. He says he’s never had to face any challenge like this before in his supplies of European wines. For a company that offers around 200 different wines from European countries, Wielar says such a strong tariff completely stops the import of those options. The tariffs are meant to punish European wine makers, but he says the stronger impact will be felt by those selling the wines stateside.

“With 100 percent tariffs,” says Wielar, “the wines simply become unsellable. These importers, whose sole business is bringing these wines to the United States, are immediately shut down beyond what they currently have in stock. Most importers don’t have more than six to twelve weeks of stock available, so in a matter of months, they’ll have no more wine to sell.”

The wine industry stretches far beyond just buyers and sellers, as well. Wielar says he fears the ripples will create a larger impact than the administration proposing the tariffs realizes.

“Truck drivers are going to lose jobs and the warehouse workers are going to lose jobs,” he says. “I’ve read where people say, ‘The rich people should stop whining because they won’t be able to drink their fancy French wine.’ That’s not what [the tariffs] are about and it isn’t the American consumer [who will suffer.] This is about real people working real jobs who will lose them.”

If passed, the consumers will soon see a clear impact too. While a few wine drinkers may pay a high price for their favorites, Wielar says he believes more will simply change their taste or stop buying from their local shops. It’s partially why he sent a letter out to the Chapel Hill Wine Company mailing list explaining the tariffs and encouraging people to contact representatives in Washington D.C.

“Like a lot of people, you feel a little powerless to what’s going around us,” says Wielar. “I don’t know if this will make any difference at all, but I think it’s important to at least try and let the people in power understand why this is bad policy. Hopefully it’ll resonate that this is something not in the interest of the American people.”

The tariffs have been proposed to go into effect January 14.

Proposed Tariffs May Spike European Wine Prices, U.S. Distributors Fearful of Impact

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