Small businesses in the wine and spirits industry are bracing for potential disruptions as US President Donald Trump threatens a 200% tariff on European alcoholic products, including wine and champagne. This move comes in response to the European Union’s decision to impose tariffs on US whiskey, reigniting trade tensions between the two economic giants.
For small-scale wine importers, distributors, and retailers in the US, the proposed tariffs could lead to higher costs and reduced supply, affecting businesses that rely on European imports. Likewise, European exporters fear losing a key market as US buyers may shift to alternative sources.
France has vowed to retaliate, with Foreign Trade Minister Laurent Saint-Martin stating, “We will not give in to threats.” Meanwhile, the EU maintains that its actions are a necessary response to previous US tariffs on steel and aluminum.
Industry experts warn that a prolonged trade dispute could hurt small businesses on both sides of the Atlantic. The US Distilled Spirits Council has already expressed concern, noting that similar tariffs in 2018 led to a sharp decline in whiskey exports.
As the situation unfolds, small business owners in the affected industries will need to navigate rising costs, supply chain uncertainties, and shifting market dynamics in the coming months.
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