U.S. Wine Merchants Warn of Mass Closures Over Trump’s 200% EU Tariff Threat

U.S. wine importers, distributors, and retailers are warning of widespread bankruptcies and layoffs if President Donald Trump follows through on his threat to impose 200% tariffs on European wines in response to the European Union’s 50% tariff on American whiskey and bourbon.

Trump, calling the EU “one of the most hostile and abusive taxing and tariffing authorities,” wrote on Truth Social that the U.S. would impose the tariffs “shortly” on wine, Champagne, and other alcoholic beverages from the EU unless the whiskey tariff is immediately dropped. The EU measure is a retaliatory response to U.S. tariffs on EU steel and aluminum.

Trump then went on to say this will be great for American wine and Champagne business, incorrectly identifying America-made sparkling wine as Champagne, a GI protected wine region.

Industry leaders say the proposed tariff would cripple the U.S. wine trade, with small and medium-sized businesses bearing the brunt.

“A 200% tariff on imported wine would destroy U.S. businesses,” said Ben Aneff, president of the U.S. Wine Trade Alliance, adding that thousands of businesses could 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 importer Bowler Wine, said European wines account for 70% of his company’s sales.

“If this were to go on for a long time, we would have to lay off about 50% of our employees and take on significant debt just to stay afloat,” Bowler told Reuters.

The United States accounts for 31% of EU wine and spirits exports, according to Eurostat. In 2024, U.S. wine imports totaled US$6.79 billion, with France and Italy dominating the market, making up 70% of the total value.

Retailers Halt EU Wine Purchases

The uncertainty has already upended business planning for U.S. wine merchants, with some halting European wine purchases altogether.

Jeff Zacharia, president of fine wine retailer Zachys in Port Chester, New York, said 80% of his inventory comes from Europe.

“There are so many unknowns right now that I’ve stopped buying European wine until the picture becomes clearer,” Zacharia told The Associated Press.

“It’s very hard to prepare when you don’t know if the tariff will be 200%, 100%, or 10%,” he said. “Each scenario requires a completely different response.”

Gabriel Picard, president of the French Federation of Exporters of Wines and Spirits, warned that a 200% tariff would deal a devastating blow to France’s alcohol export sector, affecting hundreds of thousands of workers.

“Not a single bottle will continue to be expedited if 200% tariffs are applied to our products.” Picard told The Associated Press, emphasizing that French wine and spirits exports to the U.S. would come to a complete standstill.

Comparisons to China’s Tariff War on Australian Wine

Industry experts fear the tariff could cripple EU wine sales in the U.S., mirroring what happened when China imposed 218% tariffs on Australian wine in March 2021.

The move wiped out Australian wine exports to China, dropping from AU$1.2 billion to just AU$8 million. The tariff was eventually removed in 2024. A similar outcome could unfold in the U.S., industry analysts warn, as tariffs on EU wines could force American importers to abandon European suppliers entirely.