WSWA Sizes Up Tariff Threat
March 25, 2025In a welcome development, late last week the European Union announced it’s delaying tariffs on American whiskey until mid-April in order to allow more time for negotiations with the U.S. aimed at ratcheting down trade tensions—and hopefully, avoiding damaging tariffs on both sides of the Atlantic.
But hanging over the negotiations is the U.S. threat of 200% tariffs on European Union wines and spirits starting next month. The Wine & Spirits Wholesalers of America (WSWA) recently highlighted the stakes of such a move for industry players at all three tiers. “This policy, if implemented, threatens to upend a market that relies on the availability of single-origin, geographically designated products that have strong consumer demand and are irreplaceable,” the group stated.
WSWA noted that imported wine and spirits account for 30% of the U.S. marketplace by volume and 35% by revenue according to SipSource, “meaning the cost of dining out with a bottle of wine or enjoying a cocktail made with an imported spirit will rise significantly. As a result, fewer consumers will frequent bars and restaurants, which will ultimately impact the hospitality sector, reducing job opportunities and wages.”
The WSWA is urging the administration “to reconsider the unintended consequences of these tariffs and provide exemptions for single-origin, unique wine and spirits products that cannot simply be produced elsewhere. Unlike cars or semiconductors, geographically designated products like Champagne, Irish whiskey, Scotch, Prosecco, and Port to name a few, cannot be relocated to U.S. manufacturing facilities, making their cost impact unavoidable for American businesses and consumers alike.”—Daniel Marsteller
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