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21 Mar, 2025
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Will 200% EU wine tariffs change U.S. drinking habits?
@Source: cleveland.com
CLEVELAND, Ohio – The potential for 200 percent tariffs on European wines hasn’t sent consumers running to local beverage shops to stock up on Champagne, Bordeaux or other favored wines from the European Union. It seems everyone is waiting to see what really happens after the escalating trade war rhetoric of last week. “The whole situation is rather unfortunate, but I haven’t personally noticed an uptick in European wine sales,” says Jon Tancino, owner of recently opened The Lakewood Bottle Shop in Lakewood. “Those of us on the retail end are very mindful of the situation. I’ve heard stories of other retailers and restaurants panic buying European stuff and depleting the warehouses. But these are often places with a specific regional focus for their brand, for example, a French restaurant with a predominantly French wine list.” The potential for panic was created March 13 when President Donald Trump posted on social media about wine tariffs in retaliation for EU tariffs in retaliation for Trump’s global metal tariffs. “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 in a social media post. “This will be great for the Wine and Champagne businesses in the U.S.” Tancino is taking a stoic stance, waiting to see if the president will change his mind before taking any action. “We’ll have to see how it goes down,” he says. “Some of us are cautiously optimistic that he’s coming from an aggressive stance. There’s not much I can do yet.” Customers have been asking wine managers at Heinen’s grocery stores about tariff effects, but there’s been no panic buying, says John Poggemeyer, director of wine, beer and spirits. He said he’s talked to suppliers who have stockpiled supply in warehouses on both coasts, just in case. Poggemeyer expects, or leasts, hopes any tariffs will be much lower., maybe in the 10 to 15 percent range. “Then we end up charging a little more and the winery makes a little less to get it to stay on the shelves,” he says. Kevin O’Connell, owner of La Ville Lumiere on Cleveland’s West Side isn’t so calm. “I’m petrified. I have a French restaurant. I have a wine list that is almost solely built on French brands,” he says. “We’re in a good place now, but how long will these tariff’s last? I don’t have enough wine in my wine cellar for the next four years.” “This immediately affects what I do for a living and I don’t think it’s fair,” he says. “I really hope an economist can sit down and speak to this administration and say this is going to directly affect American businesses and American families.” He points out it’s not just French restaurants, but any based on European cuisine and wine. Lindsay Smith, owner of Flight Cleveland in Cleveland, is watching and waiting before reacting much. “I haven’t noticed a huge uptick in European wine sales,” she says. “Some of our more sophisticated and in-the-know buyers are reaching out and asking about vintages they really love. In our day to day, we haven’t seen any hoarding or mass buying.” Instead, she sees the fear upstream from distributors and importers. “Everyone is in this massive holding pattern. It’s so hard to know what it actually going to happen,” she says. “Everyone was expecting a tariff of 25 percent. Two hundred percent feels outside possibility, I’m trying to hold out hope that that number is too high because that number does have a ton of implications for people in our industry. “The last time there were tariffs added our importers and our distributors absorbed some of that to make the end results not so terrible,” she notes. “You can’t do that on a 200 percent tariff.” She says a lot of these folks started stocking after the November 2024 election. Peter Bourlas at Pat O’Brien’s Fine Wines, Liquor and Gourmet Foods in Pepper Pike, says importer and distributor planning ahead will certainly keep costs stable for a while. He has questions about what will really happen on April 2 when tariffs are supposed to take effect. If they do, in fact, drive up prices, he sees opportunity for the U.S. wine industry. “There’s a lot of great domestic products,” Bourlas says. “It might open some people’s minds. Most of the grape varieties grown in Europe are grown in the United Stages. He also predicts more sales from other New World regions such as Australia and New Zealand. Ohio wineries are more worried about the tariff wars with Canada than with Europe at this point. “Canada is the biggest international market for West Coast wines,” says Donniella Winchell, executive director for the Ohio Wine Producers Association. Canada’s LCBO stores have pulled most American wines off their shelves. “That means there is a giant backlog of wine bottled and ready to be sold,” Winchell says. “That needs to go somewhere.” “The flood of California wines may be encroaching on our markets,” she notes. “Oversupply could put downward pressure on pricing of all U.S. wine.” That’s painful for an industry that’s already experience some market slide nationwide. “While we are appreciative of the retail support we’ve gotten locally, Ohio wineries are concerned about that downward pricing pressure,” she says. To compensate, Ohio wineries are increasing customer service opportunities and offering more consumer experiences, “We’ll focus on tourism and encourage local people around the state to support their local businesses,” Winchell says. So, U.S. wine drinkers are seeing two changes. Tariffs on EU wines may raise the prices of wines from 27 EU countries. Meanwhile, Canadian response to tariffs may lower the price of domestic wines. That will hurt the domestic wine industry while giving consumers a rare drop in prices. RELATED: Will beer cost more as a result of tariffs? Brewing industry remains in direct fire of tax hikes Send dining, drinking and culture story ideas to Paris Wolfe at pwolfe@cleveland.com. Review her previous stories here. Follow Paris Wolfe on Instagram @pariswolfe.
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