Proposed 30% Tariffs on EU Imports Threaten $19 Billion Economic Surplus and American Jobs
July 14, 2025 (Washington, D.C.) — In light of President Donald Trump’s recent letter to European Commission President Ursula von der Leyen announcing a 30% tariff on all European Union imports beginning August 1, the U.S. Wine Trade Alliance (USWTA) is calling on the Administration to return to the negotiating table immediately. The Alliance is urging U.S. officials to carve out wine from any final tariff action and pursue a long-term trade agreement that provides certainty for businesses and protects American jobs.
The fallout has already begun. Even before tariffs take effect, the threat alone has created severe instability in the U.S. wine industry—resulting in widespread layoffs and economic strain on small and family-owned businesses.
Republic National Distributing Company (RNDC), the second-largest alcohol wholesaler in the U.S., laid off 1,756 employees in California and shut down operations statewide (CBS Sacramento).
Jackson Family Wines, a major U.S. wine producer, has initiated a round of layoffs due to slowing sales and market uncertainty (Wine Business).
Francis Ford Coppola Winery, a well-known name in California wine, has also announced layoffs this month amid economic pressure (KSRO News).
These are not isolated cases—they reflect a broader crisis unfolding across the supply chain. From vineyard to restaurant, thousands of jobs are being lost and more are on the line.
“Imported European wine drives nearly $24 billion in U.S. economic activity annually, while just $5.3 billion returns to Europe. That’s a $19 billion economic surplus that stays in the U.S.,” said Ben Aneff, President of the U.S. Wine Trade Alliance. “This trade supports hundreds of thousands of American jobs across all 50 states.
EU wines account for up to 75% of the revenue in the U.S. wine distribution system. With that flow threatened, the financial backbone of the American wine market is under unprecedented strain.
This week, USWTA—alongside Napa Valley Vintners, Wine Institute, WineAmerica, the Wine & Spirits Wholesalers of America (WSWA), and the National Association of Wine Retailers (NAWR)—submitted a letter to President Trump urging officials to remove wine from the tariff proposal and return to the negotiating table to establish a stable, long-term trade agreement.
“This isn’t just a wine issue—it’s an American jobs issue,” Aneff added. “We are witnessing real-time layoffs, shrinking revenue, and shuttered operations. The time to act is now. Losing this huge surplus of much-needed income going into the fourth quarter would be a gut-punch for the industry, and result in huge numbers of lost jobs here at home.”
USWTA is in regular communication with the U.S. Trade Representative and will continue to advocate for a resolution that secures the future of one of the most dynamic sectors of the American economy.
About the US Wine Trade Alliance
The US Wine Trade Alliance (USWTA) advocates for the zero tariffs on imported wine to the United States by representing all levels of the US wine industry. Through coalition building, grassroots initiatives, and direct lobbying, the USWTA unites American importers, wholesalers, retailers, restaurants, and producers with a common goal: achieving a zero-tariff policy on wine imports.