Latest news with #U.S.WineTradeAlliance
Yahoo
21-03-2025
- Business
- Yahoo
Trump's Proposed 200% Tariffs on European Wine Could Be Disastrous for Restaurants
On Wednesday, Bobby Stuckey got a message that was jarring and succinct. The acclaimed restaurateur and Master Sommelier had an email from the U.S. Wine Trade Alliance with a subject that read: HALT ALL E.U. WINE SHIPMENTS. The organization was telling its members that the risk of President Trump imposing 200 percent tariffs on alcohol from Europe was too high right now for business to operate as usual. Importing wine from overseas this close to the proposed April 2 implementation date could hit with a levy so punitive that they'd be stuck with inventory they couldn't sell. It was an ominous sign for businesses, such as Stuckey's, where European wine is a major revenue driver. If the tariffs went through, it could upend many a restaurant. 'They're taking away a right of mine to run a business the way I want to be able to run the business,' Stuckey says. 'President Trump and his advisors are making a lot of stress for business owners. That's not meant to be political, that's just a fact.' More from Robb Report Suspect Arrested in $1.5 Million Theft of Cadillac Escalades Bugatti Just Made the New Tourbillon Hypercar Even Better This $10 Million Brooklyn Townhouse Blends Historic Charm with Bleeding-Edge Sustainability Trump first threatened the 200 percent tariff on all wine and spirits from the E.U. a week ago, when Europe declared it would enact a 50 percent levy on American whiskey starting April 1 (the E.U. announced Thursday it would push that back to mid-April, thus delaying America's potential response), which was a retaliation against Trump tariffs on imports of steel and aluminum. Regardless of its origins, this international trade standoff has left American restaurants in the crosshairs. In this industry where profit margins are so slim, wine helps keep many places solvent. 'This is a stat from before the pandemic, but the average profitability of an American restaurant is around 6 percent,' Stuckey says. 'It's not uncommon for restaurants in our company to have 30, 35, maybe even 40 percent of its top-line revenue come from spirits and wine.' Like with Stuckey's hospitality company, at many restaurants around the country, wine—especially selections from abroad—is intrinsic to the experience. 'Bad Idea serves Lao-inspired cuisine and primarily European wine, and those are two elements that set us apart from the restaurant scene in Nashville,' says Bad Idea's owner and wine director Alex Burch. 'Thirty to 40 percent of our ingredients and a much higher percentage of our wine come from outside of the United States. These potential tariffs are horrendous.' For Chase Sinzer, co-owner of the hit restaurants Claud and Penny on New York's Lower East Side, echoes Burch's sentiments. 'It would impact us greatly because revenue wise, our business is based on wine sales,' Sinzer says. 'We've been lucky enough to amass a network of people who trust us in the wine department, and that's what enables us to be in business.' Sinzer's bistro Claud has amassed a comprehensive wine list with nearly 2,000 selections, and his newer spot—the seafood bar Penny that's directly upstairs from Claud—offers a similarly large list with upwards of 2,000 wines. 'We're buying wine in very complex ways, from a variety of sources—private collections, wholesale distributors, auction houses—we run the gamut of everything available to us because we're looking to offer the best of the guests and tariffs effect every single part of that ecosystem,' Sinzer says. 'What is so integral to these restaurants is a big wine list, and it will be damaged by tariffs because it will damage every part of how we buy wine.' When first floating the 200 percent tariff, Trump argued it would be a boon for American wine, as drinkers would turn to stateside producers instead of European vintners. But at restaurants like Stuckey's Tavernetta in Denver, only Italian wine and Champagne is served, so just stocking American wine doesn't really fit with the ethos of the place. And besides that, Sinzer doubts that people who prefer wine from abroad will just adjust their preferences accordingly. 'When you want orange juice in the morning, and someone runs out of orange juice because it's more expensive, you don't just consume the same amount of apple juice,' Sinzer says. 'There is no pivot for guests who enjoy wine from Burgundy, the Rhône, or Champagne to switch to domestic sparkling wine or California Cabernet. The idea this is going to incentivize domestic production is a falsehood.' Great wine is finite. The best bottles that arrive on American shores are the result of importers, sommeliers, wine shop owners, and restaurateurs building relationships with winemakers abroad in order to receive an allocation of a winemaker's yield. With a 200 percent markup on bottles, it would be incredibly difficult to sell those wines in America, so those European vintners will just build relationships with other markets. So even if the tariff turns out to only be temporary, there's no guarantee wine producers will begin shipping to America again. 'Our country will be the biggest loser from this,' Burch says. 'Don't get me wrong, America produces some amazing, world-class wine, but part of the joy of wine is that you can't just recreate the place or history of other regions around the world. The U.S. produces roughly 10 percent of the world's wine. Do we really want to turn the lights off on 90 percent of what the world has to offer?' Many restaurateurs have told us that they are taking a 'wait and see' approach with these tariffs, hoping its merely saber rattling. Sinzer has been proactive just in case the worst happens. 'We've been buying wine at an increased clip since election day because of the threat of tariffs; we've been filling every nook and cranny we have with wine coming to the States pre-tariff,' he says. 'The people this will hurt most are the ones without the liquidity or storage space to stock up.' But even with the buffer, extended time with a 200 percent wine tariff would be detrimental to Sinzer's businesses and restaurants across America. And worries abound about the potential economic impact. 'Restaurants are the biggest private sector job creator in our country—12 times the size of the airline industry,' Stuckey says. 'Our industry is already so fragile and all of a sudden you add something else that could kill a lot of restaurants? It's just bad math. You're not hurting the Europeans. You're hurting taxpayers and small businesses in United States.' Best of Robb Report Why a Heritage Turkey Is the Best Thanksgiving Bird—and How to Get One 9 Stellar West Coast Pinot Noirs to Drink Right Now The 10 Best Wines to Pair With Steak, From Cabernet to Malbec Click here to read the full article.
Reuters
13-03-2025
- Business
- Reuters
US importers and retailers of EU wine warn of closures, layoffs from tariffs
Summary Donald Trump threatens to slap 200% tariff on European wine U.S. importers say they would have to foot the bill Retailers fear consumers would not accept higher prices LONDON, March 13 (Reuters) - U.S. importers, distributors and retailers selling French champagne and Italian wines told Reuters that U.S. President Donald Trump's threatened 200% tariff on European alcoholic drinks would hit them hard. Trump said the tariffs would be "great for the Wine and Champagne businesses in the U.S." However, wine importers and distributors, retailers and bar owners that Reuters spoke to said that they would pay the price. Mary Taylor, owner of European wine importer Mary Taylor Wine, told Reuters that she has 16 shipping containers of wine in transit - an amount that would wipe out her "entire net worth" if 200% tariffs were applied. "If I have to pay... I'm done," she said, adding she was looking to see if she could cancel some of the shipments and had written to contacts close to the president to argue against the tariffs. Under U.S. law, alcohol producers cannot sell directly to consumers, bars or restaurants. Instead, producers must sell to importers or distributors, who sell products on to bars and restaurants. This means European wines are mostly imported by some 4,000 small American importers and distributors, said Ben Aneff, President of the U.S. Wine Trade Alliance, which advocates against tariffs on wine. It is these U.S. businesses that have to pay the levies, said Aneff, also managing partner of Tribeca Wine Merchants, a wine store in New York, adding American retailers and restaurants would also suffer if suppliers hike prices to cover the costs. "A 200% tariff on imported wine would... destroy U.S. businesses," he said, adding many thousands would likely be forced to close. "It would do significantly more economic damage here in the U.S. than it would in Europe." Gab Bowler, president of New York-based wine importer and distributor Bowler Wine, said European wines represent 70% of his company's sales. He would first try to increase prices, he said, but this will impact sales. "What consumer wants to pay $45 for a bottle of wine that was $15 a week ago?" "If this were to go on a long time, we would have to lay off about 50% of our employees and borrow a bunch of money from the bank, putting us in a lot of debt," he said. A GREAT THING FOR US WINE? For every dollar U.S. companies pay European producers for their wine, American importers, distributors, retailers and restaurants further along the supply chain make $4.52 in mark up, Aneff pointed out. Bowler, as well as two retailers or bar owners, said U.S.-made wines, which tend to have far higher prices and a different taste, could replace very little of their European wine sales. Ed Buffington, co-owner of The Community Tap, a wine and beer bar and store with three locations in South Carolina, said the price of American wine means it could not substitute the European wines in his portfolio. His business makes 50% of its sales from wine, with half of that from European wines. "I would watch a huge part of my business vaporise overnight" if the tariffs were imposed, he said, adding this would mean layoffs. Chris Beckett, analyst at Quilter Cheviot, said some U.S.-made wines could benefit from the tariffs, however. Patrick Cappiello, winemaker and proprietor at Monte Rio Cellars, which makes relatively inexpensive Californian wine, said brands like his could see some benefit, but tariffs risked harming the distributors he relies on for sales and the sector as a whole. "I'm torn," he said, adding that tariffs would deal another blow to the entire industry at a time when sales are falling and supply outpaces demand.
Axios
13-03-2025
- Business
- Axios
Trump threatens 200% wine tariffs as trade war with Europe shifts to alcohol
Alcohol appears to be one of the earliest casualties of President Trump's trade war, one he escalated Thursday with a threat to impose massive levies on European wine and Champagne. Why it matters: The alcohol industries may not have had the same influence in the tariff fight so far as automakers, but there's still billions of dollars in revenue and thousands of jobs at stake. Driving the news: On Wednesday the U.S. imposed 25% tariffs on steel and aluminum, prompting retaliation from top trading partners like Canada and the European Union. The EU quickly reimposed previously suspended counter-measures, including 50% tariffs on American whiskey as of April 1. On Thursday, Trump responded, threatening a 200% tariff on European wine and Champagne if the whiskey levy wasn't removed. "This will be great for the Wine and Champagne businesses in the U.S.," Trump posted on Truth Social. Yes, but: Historically, it's not. In 2020 the U.S. Wine Trade Alliance begged Trump to suspend a previous set of retaliatory tariffs on EU exports that had been imposed in 2019, citing their significant impact on the hospitality industries. By the numbers: The U.S. imports more than $6.7 billion worth of wine a year, per the American Association of Wine Economists, with about two-thirds of that coming from France and Italy. What they're saying: " We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector," the Distilled Spirits Council of the United States said in a statement. "We want toasts not tariffs." 💭 Thought bubble, from Axios economics reporter Courtenay Brown: The EU is quickly learning the risk of trying to hit Trump where it hurts, like red-state industries. He doesn't back down, he doubles down. "If you make him unhappy, he responds unhappy," as Commerce Secretary Howard Lutnick told Bloomberg TV Thursday. The bottom line: To paraphrase FDR, what America needs now is a drink — but not if it costs 200% more.
Yahoo
25-02-2025
- Business
- Yahoo
Could possible tariffs on wine lead to higher prices in Nashville restaurants?
NASHVILLE, Tenn. (WKRN) — With President Donald Trump teasing ahead to future tariffs, wine experts warn your next dinner out in Nashville could cost more. Jon-David Headrick lives in Franklin. However, he often travels to France, selecting biodynamic wines to import to the U.S. Nashville hot chicken up for official state food in Tennessee legislature 'To share the taste of something on the other side of the world with our American customers — it's really special,' Headrick said. With recent tariff talks, restaurant owners and wine connoisseurs fear bringing wine into the country could soon become more expensive. 'For every dollar the United States sends to let's say France or Italy to buy a bottle of wine, U.S. businesses — mostly small and family owned — make $4.52,' president of the U.S. Wine Trade Alliance Ben Aneff said. 'For restaurants, making a big margin on wine isn't a luxury; it's an absolute necessity.' Although tariffs on wine haven't been officially announced yet during this presidential term, Trump imposed them in 2019. Still wines from France, Germany, Spain and the United Kingdom had a 25% tariff. Businesses across the U.S., Nashville, felt the impact. 'Some of the senior restaurant folks that we talk to all the time say at a minimum, at a small restaurant, the tariffs on wines meant that they lost one staff member per shift,' Aneff said. 'In a nutshell, I think, diners could expect to pay higher prices for worse service. You'd have some restaurants that would, obviously, close and restaurants that otherwise would have opened won't be able to open.' ⏩ Headrick explained that tariffs aren't paid by the country the wine is coming from, but the American company importing the wine. With wines being unique to their country of origin, he hopes the US will avoid imposing tariffs on the industry. 'When the United States company imports that wine, they have to write a check to the U.S. government for the amount of the tariff. That could be many tens of thousands of dollars,' Headrick explained. 'From a personal level, it's going to hurt a lot of my friends who are farmers — who are real salt of the earth, hands in the dirt kind of farmers abroad. It's going to hurt our business a lot.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-02-2025
- Business
- Yahoo
‘It impacts all small businesses:' How imposed tariffs are challenging the wine industry
ROCHESTER, N.Y. (WROC) – Since taking office, President Donald Trump has imposed tariffs on certain items. It has already had ripple effects on the national and local wine industry. As a result, businesses say they are mitigating the challenges amidst uncertainty. Locally, Casa Larga Vineyards breaks down what they have seen so far. 'For us being a local producer, actually, the only negative to us is the things that we buy. We have to buy if we're using real cork. That has to come from Portugal. Bottles, they don't make them in the United States. So, we have to get them from, I believe they come from Mexico, France, or China. From a raw materials standpoint, we also have tractors and things that are Italian made, so when we need parts, I'm sure the tariffs will be imposed on those,' said Andrea Colaruotolo O'Neill, president of Casa Larga Vineyards. As regional wine producers work to get ahead of the impacts, those at the national level are also working to achieve a zero-tariff policy. 'It's required that wine is imported by an American importer, an American distributor, and then sold to an American retailer or restaurant. For every dollar spent by Europe or someplace out of the country, American small businesses make sense from that dollar. If you produce wine in the Finger Lakes, they're unique. It's produced there and if you produce wine in France, it doesn't taste like wine from anywhere else because it's not fungible,' said Harmon Skurnik with the U.S. Wine Trade Alliance. With the additional costs expected to harm wine production across the U.S., experts add it will boil down by region. 'These are all small businesses. It impacts the restaurants, where the wines have to become more expensive. It impacts the winery. It impacts all small businesses whether you're a wine shop, a restaurant, or the winery itself,' said Skurnik. When it comes to distribution, representatives with the U.S. Wine Trade Alliance note American producers rely on diversity, or a surplus of options. With these tariffs, they say options are limited, which makes it difficult for wineries to grow and get their business off the ground. This is a developing story. Stay with News 8 for more updates. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
