- From American whiskey to French champagne, Alcohol became a factor in Trump’s trade war.
- Both customs tariffs can see in the coming weeks unless the United States reached an agreement with the European Union.
- Companies, from wine stores to restaurants, already interact with potential tariffs.
President Donald Trump may not drink, but his commercial war shakes and raises the market for some of the most common drinks in the world.
On Wednesday, the European Union of American definitions responded to aluminum and steel by imposing a 50 % duty on various products that start on April 1, including one of the most well -known drinks in the United States: whiskey.
Just one day later, Trump threatened a 200 % tariff on wine and alcohol from the European Union countries, including the famous French champagne. It is unclear when or whether this tax will achieve valid, but it already pays reactions in the United States.
For example, some wine stores promote special offers to customers who want to store European wine, where one in New York City sends emails to ordinary customers who offer “tariff” deals.
Alexandra Evanak and her husband, Stephen Varilla, who were delighted by the Italian Villa Prolieh Restaurant in Manhattan, said that Trump’s threats were “warning.” The restaurant carries about 75 European wine and alcohol carries from 2.5 to 3 times, which is higher than many dishes.
“How is the Italian restaurant given European wine?” Farla said.
The owners of Villa Perulia said they are considering identifying wine sources from other countries.
Villa Broallia
It makes them wonder if the costs will be absorbed or transferred to customers. Ivanak said they may instead look forward to South America, South Africa, Australia or New Zealand for wine if the definitions enter into force, as well as some types of wine in California. Varela also said they might ask wine as natural and store it in the basement.
“Some of these wines will go, in the upper end, from 200 to 300 dollars, so how can we really increase prices?” “Some customers are more cautious about spending economic concerns.
The United States represents about 31 % of wine and spirit exports in the European Union, according to Eurostat, the European Union Statistics Office. Meanwhile, the European Union constitutes about 40 % of the export market for us in 2023, according to The Military Spirits Council in the United States.
For us, wine makers, the recent introductory threat can be an opportunity.
Zac Bilka, founder and CEO of Coo at UNE Femme Wines, based in New York, said his company developed the supply chain that is located almost entirely within the United States after Covid made sources abroad more complicated.
Bilka said he expected the US -based alcohol brands to focus on the local level if Trump’s tariff enters by 200 %.
If US threats become real, Pelka expects UNE FEMME to become a more attractive option for restaurants, retailers, hotels and other customers who want a fixed source of wine in the United States.
He said about the possible tariff: “As of today, I think it becomes the central point on the field” for buyers.
Teal Talk has already bought consumers in other countries of local suppliers instead of importing from the United States. Many Canadians are looking for alternatives “made in Canada” in light of the fees that the Trump administration threatened and enacted on the goods of that country.
Whether or all the taxes are realized, they must be seen. Last week, Trump imposed a 25 % tariff on imports from Canada and Mexico – only to suspend it shortly for most elements until April 2.
Even if the customs duties become valid, they may not see the high prices immediately.
Blake Leonard, head of wine at Stew Leonard’s Wine & Spirits, who runs many stores in Connecticut, New Jersey, and New York, BI that some of its suppliers brought their value months from European wine to Teekla from Mexico to the United States for possible definitions.
This early procedure will help maintain the prices of many drinks, at least temporarily. “The last thing we want to do as a family company is to raise prices for our customers,” Leonard said. She said that about half of all wine that the chain sells comes from European countries – primarily France and Italy.
Lucon Whiteing, CEO of Brown Foreman, who makes Jack Daniel whiskey and calculates Europe as major export markets. “It seems that things are changing very quickly.”
Whitening said at the Industry Conference on Wednesday, the day when the European Union announced its latest tariff, that the date of the validity of April 1 for the definitions offered by the European Union to the United States leaves time to the United States and the European Union to resolve their differences.
“This gives me some optimism that both administration and other corresponding monuments during the past few weeks are trying to solve things,” said Whiteing.
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