How new U.S. tariffs on the EU and U.K. could affect the cost of booze

The looming 15% U.S. tariff on European Union imports is set to impact the prices of French and Italian wines, as well as other spirits, starting on August 1. This tariff will have a ripple effect on the industry, with distributors like Harry Root of Grassroots Wine in Charleston, South Carolina, facing the decision to raise prices for his clients in order to cover the added costs. As a result, consumers can expect to see higher prices for their favorite imported wines.

According to Ben Aneff, President of the U.S. Wine Trade Alliance, the increase in prices for imported wines could also lead to higher costs for domestic wines as consumers shift their preferences. This shift in demand could ultimately lead to higher prices and limited choices for consumers, creating challenges for the industry. Max Rohn, CEO of Wolffer Estate winery in Long Island, New York, expressed concerns that the tariffs would discourage people from purchasing wine, ultimately impacting sales.

Italian winemakers are warning that a bottle of Italian wine that used to retail for $11.50 in the U.S. could now cost around $15 due to the 15% EU tariff. The impact of these tariffs extends beyond just wine, with a 10% tariff on U.K. imports potentially driving up liquor costs for consumers. Drew McKenzie Smith of Lindores Abbey Distillery in Scotland mentioned that they may have to increase the price of a bottle of scotch to cover the added costs.

Trade groups on both sides of the Atlantic are lobbying for exemptions from the tariffs, citing potential losses for both European and domestic wine producers. The Distilled Spirits Council and the U.S. Wine Trade Alliance are advocating for wine to be included in the list of exempted goods under the new U.S.-EU trade deal. The potential loss of thousands of jobs at manufacturers and distributors, as well as the impact on restaurants that rely on European wines, adds to the urgency of finding a resolution to the tariff issue.

In conclusion, the new tariffs on EU imports are poised to have a significant impact on the wine and spirits industry, with higher prices and potential job losses looming. The industry is hopeful for a resolution that will mitigate the effects of the tariffs and ensure the continued availability of European wines in the U.S. market.