Tariffs & Tears
Increased tariffs will hurt the American wine industry
Hello, wine friends! A few weeks have passed since my last post. Life happens, and I’ve made a concerted effort to balance out the chaos with calming moments of stillness. But being still doesn’t mean oblivious, and I’m keenly aware of the confusion and anxiety gripping the wine industry due to the threats of increased tariffs. Now, I’m no economist, but one of the many things I love about wine is how it expands my knowledge on a wide range of topics, including science, history, and socioeconomic issues. The threatened 200% tariff on European wines doesn’t just mean our favorite Champagne, Barolo, and Rioja will cost more; exorbitant tariffs would render a mighty blow to the American wine industry.
SevenFiftyDaily, a respected online wine magazine, recently published Tariffs on European Wine Will Harm American Producers—Here’s Why and shared astute insights from Remi Cohen, CEO of Domaine Carneros in Napa Valley: “While tariffs are intended to strengthen the position of American producers relative to foreign producers, the reality of tariff implementation is that it hurts the entire wine industry. Not only do certain tariffs increase the cost of goods used to produce wines domestically, tariffs on imported wine also impact the domestic industry by having a negative impact on distributors, retailers, and restaurants who work with imported wines. These are critical partners of domestic producers and if their businesses are adversely affected by tariffs, the pain is felt throughout the entire wine industry.” In a call-to-action, the US Wine Trade Alliance has asked its members to “Halt all shipments of wine, spirits, & beer from the EU. The current risk of tariffs is too high.”
As a writer, I know words have power, and the tariff threat is a havoc-wreaking weapon. We tend to take wine for granted; it’s always there at our local wine shop, restaurant, or festival. Yes, wine is a business, but it is also a vibrant community that fosters genuine connections between people from diverse backgrounds. Whether we raise a glass in camaraderie, victory, or defeat, wine has been woven into the human experience for 8,000 years. It’s our turn to be there for wine and the people in the industry who will be most impacted by tariffs. Cry out loud. Now is not the time to sip in silence.
I'm not sure yet if this is a real threat or some sort of trade negotiating position, but I did work for a French wine importer during the Bush invasion of Iraq (when Americans suddenly refused to drink French wine in protest of their decision not to participate). We did have a rough year or so, but ultimately it forced us to diversify into high-quality producers from other regions and countries.