Tariffs Threaten to Raise Prices in Wine and Spirits Industry

The wine and spirits industry is bracing for a potential price surge due to looming tariffs. The Wine and Spirits Wholesalers of America has warned that the decision could "upend a market that relies on the availability of single-origin, geographically designated products that have strong consumer demand and are irreplaceable."

The group notes that 30% of wine and spirits by volume are imported, with imported wine accounting for 35% of all wine and spirits revenue in the U.S. "Given the challenges the wine and spirits industry has already faced—especially with 2024 being one of the most difficult years in decades, according to SipSource data—businesses across all three tiers, from suppliers to wholesalers to retailers, are in no position to absorb such drastic cost increases," said Wine and Spirits Wholesalers of America President Francis Creighton.

"While individual companies will make their own choices, the vast majority will struggle to manage these added expenses. At the end of the day, these tariffs, if implemented, won’t just hurt our industry; they will directly raise prices for American consumers," Creighton warned.

President Trump has indicated that he would enact a 200% tariff on all alcoholic products coming from the European Union, claiming it would be "great for the wine and champagne business in the U.S." However, if Europe does not lift its tariff on whiskey, Trump threatened to impose the 200% tariff on all "wines, champagnes, and alcoholic products coming out of France and other E.U.-represented countries."

"A tariff on imported wine and spirits will directly impact American workers," Creighton said. "Rising costs will cause some consumers to stay at home, hurting the bartenders, servers, and other bar and restaurant workers who depend on customer traffic for tips and shift hours."

The Wine and Spirits Wholesalers of America is urging the Trump administration to reconsider imposing the tariffs.