LEXINGTON, Ky. (WKYT) – We’ve talked about how tariffs could impact Kentucky’s bourbon industry, but what about another state’s signature product?
For today’s Good Question, Bryan asks: “I was under the impression most of the wine consumed in the U.S. was from California. How much wine do we really import that’s going to cause such a hardship?”
California does make a lot of wine, but apparently not enough for Americans.
According to a report in Forbes, the U.S. imports around 37% of the wine it consumes. A majority of those imports, more than 72%, come from the European Union. While the current tariff for their wines is 10%, President Trump has threatened to raise that number depending on how negotiations go.
However, it’s not just foreign wines that are being impacted.
Supporters of tariffs say the move will lead consumers to more American products. However, American wine makers say their prices could also go up because of tariffs.
A winemaker in Sonoma County, California, told NPR their supplies, like corks, glass bottles and even French oak barrels, could all go up. That cost would likely be passed along to consumers.
Also, they are worried that the move will impact how much wine they ship out of the country.
In response to those tariffs, leaders in Canada have removed American wine and liquor from store shelves. The Wine Institute says Canada accounted for 35% of all U.S. wine exports, with a retail value of more than $1.1 billion.
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