Trade tariffs on European wine will have an impact on domestic prices as well, says expert in the area.
The price of wine, both interntional and domestic, is about to increase, says experts (Image: Getty Images)
The cost of wine is about to go up because of a new trade tariff put in place, which goes into effect August 1. While Donald Trump claims he’s negotiating “excellent” trade tarffis, people in the wine industry are not happy with the latest turn of events.
Wines from France and Italy will be affected by the new 15% U.S. tariff on European Union imports. A bottle of wine that cost $11.50 in the US, will now cost up to $15 once the trade tariff kicks in, and that’s on the lower end of the scale, with some wines costing $30 and up, and will also see the price increase.
Harry Root, owner of Grassroots Wine, in Charleston, South Carolina, discussed the matter during a US Wine Trade Alliance roundtable.
READ MORE: Trump tariffs expected to slam Americans with $2,000 cost-of-living surge in 2026READ MORE: Trump’s tariff war cost Americans $115 million in essentials and wiped out $4 trillion in stocks
He said: “We have to increase prices because when the container of wine I’ve ordered lands, I have to pay 100% of whatever the tariff is on that wine.”
The tariff on imported wines will also impact wines made in the US, as people will start buying domestic labels, as they are more affordable, creating demand.
Drinking wine at home is going to get a lot more costly, says experts (Image: GETTY)
USWTA President Ben Aneff was also at the roundtable, calling on economics to explain how the tariff affects both international and domestic products.
Aneff said: “Econ 101 will tell you that higher-cost imported products will also mean higher prices for domestic products.”
He added: ”So you’d expect a big drop in demand, higher prices, lower choice for consumers. It’s a problem.”
The cost of wine is about to increase
Max Rohn, CEO of Long Island, New York-based Wolffer Estate winery, is not happy with the tariff and the impact it will have on his customers.
Rohn explained: “We want people to drink wine, and tariffs will make them drink less wine.
Trade groups for wine producers are lobbying for exemptions from the 15% tariffs, asking that wine be left off the list.
The White House has yet to address how domestic wine will be affected by the EU tariffs.
Click here to follow the Mirror US on Google News to stay up to date with all the latest news, sports and entertainment stories.
Dining and Cooking