EU wine tariffs threatened by Trump at 200% also scares the U.S.

Hoping that the 200% tariffs promised by Trump on Champagne and wines from France and Europe will remain just a threat, in case the European Union does not backtrack on the 50% tariffs on American whiskey as a response to the US 25% tariffs on steel and aluminum, trembling about the damage in a key market like the US one are not only the European producing countries, Italy and France in the lead, which fear billions of dollars in damage (as already reported here). But also the wine and restaurant business industry in America, which, thanks to imported wines (worth more than a third of all wine sold in the U.S., and well over half of which come from Italy and France themselves), fears billions in losses. As told in the pages of one of America’s most influential and widely read newspapers, the “New York Times”, by Eric Asimov.
As we reported yesterday, “The European Union”, said Trump, on his social media “Truth”, “one of the most hostile and abusive tax and tariff authorities in the world, created for the sole purpose of taking advantage of the United States, has just imposed a nasty 50% tariff on whiskey. If this tariff is not removed immediately, the United States will soon impose a 200% tariff on all wine, Champagne and alcohol products from France and other countries represented by the European Union. This will be great for wine and Champagne businesses in the United States”. Among them is that of President Trump’s own family, which produces wine with Trump Winery, in Virginia, run by his son Eric.
And while it is all to be interpreted, looking only at the issue of wine and spirits, why Trump explicitly names only France and then generically “other countries” EU (it is worth mentioning again that in the previous round of duties imposed in the first Trump presidency, introduced at the time over the Airbus-Boeing dispute, it was basically French and German wines that were affected, not Italian wines, ed.), the part where Trump sees the possible measure as benefiting American wineries has not been received in the States with too much conviction. “It is unclear who will benefit if President Trump follows through on his threat to impose 200% tariffs on all wines and alcoholic beverages from the European Union, but it certainly won’t be American consumers”, writes Asimov, who also reports how the American industry itself does not view the measure favorably, as explained by some wineries and wine merchants, who also point out how “for most wine producers, sales depend on an interconnected network of small businesses, including distributors, retailers and restaurateurs, who also depend on sales of European wines”, Asimov adds.
Although not everyone agrees with this analysis, or at least expresses less concern, such as the Louis Roederer Group, top Champagne brand, which, for the past 40 years, has also invested in California, with Roederer Estate first, and then with other companies in California. “If there were really very high tariffs, it would hurt our European wine operations, but our California operations would benefit”, said Guillaume Fouilleron, president and CEO Roederer USA. But, Asimov further points out, this is the case for a large group, while for many small companies the impact would be much harder to deal with. Not to mention the problems that could come for EU wine already on its way to the USA: if customs clearance takes place before any tariffs (which, according to Trump’s statement to date, should come, if at all, from April 2), there would be no problem, but if the goods arrive in port after the threatened introduction of the duties, importers would be faced with no small economic problem, which would cascade down the entire restaurant and retail chain, all the way to consumers. “These tariffs, if enacted, would completely destroy beloved businesses in every city in America”, said Ben Aneff, who, among other things, writes Asimov, is president of the Us Wine Trade Alliance, which works to ensure a free trade environment for wine.
“It cannot be overstated how much restaurants depend on the revenues generated by these products”. While other importers, Asimov reposted, would already be considering suspending purchases of the EU wines until there is clarity. But without these wines coming in from Europe, in addition to the direct consequences in the Old World, there would also be repercussions for the U.S. logistics and business workforce itself.
Hoping that, in the meantime, U.S. President Donald Trump will change his mind, and that U.S. and EU policy and diplomacy will find a solution to a situation that can only do damage.