The US wine supply chain to Trump: “We need toasts, not tariffs: 2 billion dollars at risk”

“We estimate that a 15% tariff on EU wines and spirits could result in the loss of over 25,000 jobs in the United States and nearly $2 billion in lost sales”. While the European wine industry, particularly in France, Italy, and Spain, has repeatedly expressed concern about the application of US tariffs (which will start today at 15%), the decision, imposed by US President Donald Trump, leaves industry insiders with many doubts, fearful of seeing their business eroded, with serious consequences for employment. A concrete and detailed warning against the application of tariffs on wine and spirits has come from the “Toasts Not Tariffs Coalition”, an organization composed of over 50 U.S. associations involved in the wine and spirits business, united in their opposition to the tariffs and representing the entire three-tier supply chain of the U.S. alcoholic beverage sector (i.e., producer, importer, distributor, and retailer). In a letter addressed to US President Donald Trump, the Toasts Not Tariffs Coalition, while supporting “your efforts to strengthen the economic vitality of our great country,” calls for “the United States and the European Union to reach an agreement to ensure fair and reciprocal trade in spirits and wine. As we approach the critical holiday season, which is essential to the success of our industries, we implore you to secure this important agreement for the United States as soon as possible. This would represent a clear and significant victory for American workers, businesses, and consumers”. Also because, continues the Toasts Not Tariffs Coalition, “our coalition members produce, distribute, and sell wine and spirits in every state in the United States, supporting more than 3.5 million jobs and generating 476 billion dollars in annual economic activity. These include farmers who grow crops such as grapes, corn, wheat, barley, hops, rye, and rice on more than a million acres of farmland, along the entire supply chain, right down to waiters, bartenders, truck drivers, and store clerks. These jobs also include industries such as transportation and distribution, bottling and packaging, marketing and finance, restaurants, bar staff, taverns, small packaged goods stores, and large and small grocery stores. Beyond wine and spirits sales, our coalition promotes broader economic growth. For example, restaurants alone employ 15.7 million people and generate $1.5 trillion in annual sales”. Regarding wines and spirits, the Toasts Not Tariffs Coalition recalls that they are “often tied to specific geographical regions” and therefore “can only be produced in designated Oases. Consequently, production cannot be relocated to avoid tariffs.” And again that “most US wine exports go to countries with low or no import tariffs. Nearly 86% of U.S. liquor exports go to countries that have eliminated tariffs on these products, and approximately 98% of liquor imports come from countries that have eliminated tariffs on U.S. liquor. Ensuring reliable access to global markets creates jobs, supporting rural and urban communities”. The final message, addressed to Trump, is even more explicit: “We need toasts, not tariffs, as we head into the most important season for our industry. As part of your “America First” trade policy, we ask for your leadership to ensure fair and reciprocal tariff-free trade for U.S. and European Union spirits and wines as soon as possible. We stand ready to support your efforts to secure this important victory for American workers and businesses”. These are the names of the signatories: Association for Enterprise Opportunity, American Beverage Licensees, American Craft Spirits Association, American Distilled Spirits Alliance, American Distilling Institute, American Single Malt Whiskey Commission, Arizona Craft Distillers Guild, Associated Cooperate Industries of America, Atlantic Seaboard Wine Association, Associated Cooperage Industries of America, California Artisanal Distillers Guild, Colorado Distillers Guild, Connecticut Spirits Trail, Distilled Spirits Council of the United States, Distillers Association of North Carolina, Florida Craft Spirits Association, Glass Packaging Institute, Idaho Distillers Association, Illinois Craft Distillers Association, Independent Restaurant Coalition, Iowa Distillers Alliance, Kentucky Distillers’ Association, Louisiana Distillers Guild, Maryland Distillers Guild, Maryland Wine, Michigan Craft Distillers Association, Michigan Spirits Association, Montana Distillers Guild, Napa Valley Vintners, National Association of Beverage Importers, National Association of Wine Retailers, National Council of Chain Restaurants, National Restaurant Association, National Retail Federation, New Hampshire Distillers Guild, New Jersey Craft Distillers Guild, New York State Distillers Guild, North American Shippers Association, NY Wine Industry Association, Ohio Distiller’s Guild, Oregon Distillers Guild, Oregon Wine Council, Pennsylvania Distillers Guild, South Carolina Craft Distillers Guild, Tennessee Distillers Guild, Texas Distilled Spirits Association, The Maryland Wineries Association, United States Bartenders’ Guild, U.S. Wine Trade Alliance, Virginia Distillers Association, Virginia Spirits Association, Washington Wine Institute, Willamette Valley Wineries Association, Wine & Spirits Wholesalers of America, Wine and Spirits Shippers Association, Wine Institute, WineAmerica.