The United States is suddenly looking less bubbly for European wines.
President Donald Trump has threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned 50% tariff on American whiskey.
Wine sellers and importers said a tariff of that size would essentially shut down the European wine business in the U.S.
Wine and spirits from the 27-nation European Union made up 17% of the total consumed in the U.S. in 2023, according to IWSR, a global data and insight provider specializing in alcohol.
Of that 17%, Italy accounted for 7%, mostly from wine, and French wine, cognac and vodka accounted for 5%.
Overall, the U.S. imports much more alcohol than it exports.
Europe’s tax on American whiskey, which was unveiled in response to the Trump administration’s steel and aluminum tariffs, is expected to go into effect on April 1.
Trump responded Thursday in a social media post:
“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,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”
Trump was incorrect about the Champagne business. Champagne is a legally protected wine that can only come from France’s Champagne region.
But U.S. winemakers, including Trump Winery, a Virginia winery owned by the president’s son Eric Trump, do make sparkling wine.
Gabriel Picard, who heads the French Federation of Exporters of Wines and Spirits, said 200% tariffs would be “a hammer blow” for France’s alcohol export industry, impacting hundreds of thousands of people.
“Not a single bottle will continue to be expedited if 200% tariffs are applied to our products. All exports to the United States will come to a total, total, halt,” Picard said in an interview with The Associated Press.
Some U.S. wine stores saw an opportunity, with some holding “tariff sales,” encouraging regulars to come stock up on their favorite wines while they’re still affordable.
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