The wine industry is at a critical juncture, and collective action is essential
to prevent policies that could have long-lasting negative effects.
By Ben Aneff
Tariffs on European Union (EU) wine have long-reaching consequences that extend far beyond the borders of Europe, posing a significant threat to American businesses. Restaurants, retailers, distributors, and importers across all 50 states rely on imported wines, and tariffs lead to higher prices for American consumers while diminishing profits for businesses that depend on these imports.
When tariffs are imposed, these critical partners face increased costs, reduced margins and supply chain disruptions. Tariffs disrupt the entire U.S. wine industry within the three-tier system, from the immediate U.S. businesses that rely on the sales of imported wines to domestic growers that need healthy distributors for access to market. The American wine market is an ecosystem, where weakness in one tier reverberates throughout.
A Harmful Policy for U.S. Restaurants and Businesses
For every dollar spent on wines imported from the EU, more than four dollars in revenue is generated for U.S. businesses. The sales of imported wines are particularly crucial for restaurants, as they represent one of the few high-profit items in an otherwise challenging industry. In a sector often characterized by slim margins and intense competition, imported wines offer restaurants an opportunity to enhance profitability.
Restaurants and other small businesses in the U.S. wine market have been hit hard by recent inflation. Often family owned, restaurants face economic pressures and rising costs, and the revenue generated from imported wines can significantly impact their bottom line, letting them invest in quality ingredients, better service and overall customer satisfaction.
The Hidden Costs of Tariffs for U.S. Wineries
It is a common misconception that tariffs on imported wines might encourage consumers to buy more American wine, but wine is not “fungible,” meaning wines from different regions are not interchangeable. A consumer seeking a Chianti from Italy will not likely switch to a California Cabernet, as the appeal lies in the unique attributes of wines from specific regions. Tariffs on imported wine do not increase domestic wine sales; instead, they harm U.S. wine producers by disrupting the distribution networks that both domestic and imported wines rely on.
Distributors play a vital role in the three-tier system that governs alcohol sales in the United States. For many, imported wines generate significant revenue that helps cover the costs of onboarding new domestic producers. Without profits from these sales, distributors may hesitate to invest in smaller American wineries, leaving these producers without access to key retail markets. This creates a bottleneck for U.S. wineries, limiting their ability to grow and reach new customers.
The Impact on U.S. Exports
If the U.S. imposes tariffs on EU wineries, other countries may respond by imposing tariffs on American wine exports. Maintaining free and fair trade policies is essential for U.S. wineries to succeed in global markets. Any policy restricting the flow of goods internationally hinders the ability of domestic wineries to compete and grow.
The Role of the USWTA in Advocacy
The U.S. Wine Trade Alliance (USWTA) serves as an essential advocate for a tariff-free wine industry, working with lawmakers to shape trade policies that support American businesses. In recent years, USWTA has made strides in connecting business owners with their congressional representatives, highlighting the impact of wine tariffs on their livelihoods.
Through these efforts, the USWTA has helped constituents send over 30,000 letters to Congress, urging policymakers to avoid imposing tariffs on wine. The organization’s advocacy emphasizes that tariffs not only hurt small businesses but also fail to achieve the desired political outcomes. Tariffs on wine do not compel foreign producers or governments to change their behavior. Instead, they inflict damage on U.S. businesses, particularly those that are small and locally owned.
What You Can Do: A Call to Action
The upcoming presidential election will likely influence the direction of U.S. trade policy, making now a crucial time for wine producers, distributors and consumers to make their voices heard. Regardless of political affiliation, lawmakers need to understand that tariffs on wine harm U.S. businesses more than they benefit them. The next president should ensure that tariffs align with U.S. economic interests, and wine tariffs simply do not.
Here’s how you can help:
- Contact your congressional representatives. Make sure they know how tariffs on wine affect your business and community.
- Speak to your grower network and regional groups such as Napa Valley Vintners or WineAmerica to amplify the message.
- Reach out to the USWTA at contact@winetradealliance.org for more information and guidance on how to engage with policymakers and get involved.
The wine industry is at a critical juncture, and collective action is essential to prevent policies that could have long-lasting negative effects. Advocacy groups such as USWTA are already working to connect businesses with policymakers, but they need support from stakeholders across the industry to make a meaningful impact.
Tariffs on wine are ineffective and actively harmful to the U.S. wine industry. They disrupt supply chains, limit market access for American producers, raise consumer prices and affect U.S. exports. As the election nears, the wine community can advocate for trade policies that promote domestic growth and international competitiveness.
By reaching out to policymakers, collaborating with industry groups and staying informed about trade policies, stakeholders in the wine industry can help ensure that future policies reflect the true interests of American businesses. Together, we can create a future where U.S. businesses thrive at home and abroad, free from unnecessary tariffs.
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Ben Aneff
Ben Aneff is the managing partner of Tribeca Wine Merchants in New York City, named one of “America’s Best Wine Shops” by Food & Wine Magazine and an “Editor’s Favorite” by Wine Spectator. A prominent voice in the fight against wine tariffs, Aneff has been involved since the outset. He’s led tariff discussions, testified on their impact before the International Trade Commission and helped forge alliances with key stakeholders from all corners of the industry. He is currently president of the U.S. Wine Trade Alliance (USWTA) and a board member of the National Association of Wine Retailers (NAWR). A native Texan, Ben holds an MBA from Cornell University and resides in Forest Hills, NY, with his wife, Hilary, and their two children.
