SAN ANTONIO — President Donald Trump threatened to levy monstrous tariffs on alcohol coming from Europe. We went to find out what this could mean for you and the Texas wine industry.
This is all part of President Trump’s plan to place reciprocal tariffs on the European Union in an effort to bring down U.S. trade deficits. It may bring the deficit down in the long term, but if enacted, prices for all alcohol coming from across the pond will skyrocket.
“I think it’s going to have rippling effects here in the U.S. not only for consumers but businesses that rely on European wine imports,” said Christian Oggenfuss, the co-founder and CEO of Napa Valley Wine Academy.
The European Union announced a 50 percent whiskey tariff which is expected to be imposed in April.
Why did they slap us with that tariff? As a response to the Trump Administration’s tariffs on all imported steel and aluminum tariffs that went into effect on Wednesday.
This 200 percent tariff would be on all alcohol coming from EU countries into the United States.
“I think some importers, distributors will probably pull back on buying those wines because marking up to cover those tariffs, I don’t think the consumer is prepared to bear that responsibility,” Oggenfuss added.
On his Truth Social, President Trump said in response to the whiskey tariff:
“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. This will be great for the Wine and Champagne businesses in the U.S.”
Oggenfuss says the tariffs would have a rippling effect in the industry, including right here in Texas. Oggenfuss said, “Distributors laying off sales staff, importers reducing the amount of wines they import. To save money will probably be laying off staff, restaurants who depend very heavily on alcohol sales for a revenue stream. They’ve already been heavily impacted by the pandemic.”
European officials are reportedly preparing counter-tariffs on more products from the U.S. including beef, dairy and produce to name a few, as the trade war escalates.