Alcohol is thrown into a trade warfare

Anxiety signals

In the Canadian Province of Ontario, alcoholic beverage shops cleaned their shelves from California’s wine and Tennessee whiskey, replacing these drinks with local products accompanied by the caption: « For Canada. »

Restaurant businesses fear that containers full of European wine will reach the shores of the US – so expensive that it will eventually be unable to sell. The Governor of Kentucky demands mercy – that only the bourbon of his state’s business card would not suffer from this trade war.

Mr Trump opened a new front, threatening 200 percent. tariff in the US for imported alcoholic beverages from the EU. It was his response to the EU’s decision to start applying 50 percent. a fee for American whiskey. Last week’s escalation caused confusion on both sides of the Atlantic.

According to EU data agency Eurostat, last year the EU exported wine to the US for more than $ 5 billion. US dollars. Almost half of it came from France, and about 40 percent. – from Italy.

200 % The tariff would raise the price of a bottle of wine over $ 20, which seems acceptable to many American wine lovers, The Wall Street Journal (WSJ) told Patriarch Lambert Frescobaldi, a 30 -time Italian winemaker dynasty. In his opinion, when the price is raised, most people will probably no longer buy Italian or French wine.

Broader effect

Remi Cohen, the executive director of Domaine Carnera, a small wine brewery in California, says she was in a whirlpool when she saw news headlines on her smartphone screen and felt her pulse jumped. It seems that homemade sparkling wines and Pinot Noir wine maker should enjoy this knowledge. But not everything is that simple, there are deeper layers of the situation, explains Cohen.

In the hope of US tariff steel, its winery had ordered a steel at the end of last year, which she needed for a special grille to replant some of the vineyards. More recently, the Winery has been considering what to do for the imports of Canada and Mexico, which may affect the price of glass bottles.

Now the tariff of European alcohol can be damaged by the ecosystem of retailers, distributors and restaurants on which Domaine Carneros depends, Cohen told WSJ. « If they are negatively affected, the pain will be felt throughout the industry, » she believes.

Of course, 200 percent. The tariff for European alcohol can remain unrealistic. It can be delayed, reduced or appointed for just a few days. Mr Trump was ready to introduce 25 percent in February. Tariffs for all imports from Canada and Mexico, including Canadian whiskey and Mexican tequila, and postponed them at the last minute for a month. Later, the rates came into force briefly this month, but were soon substantially suspended.

This did not prevent Ontario Prime Minister Doug Ford to go against American alcohol. The Ontario Alcoholic Beverages Control Board removed American drinks from store shelves and warned bars, restaurants, supermarkets and self -service stores to no longer order US origin products.

« Kentucky Governor said, ‘Don’t touch our bourbon.’ I said, « Governor, this is the first thing we will take, » Ford said recently at a press conference.

« Kentucky bourbon manufacturers are over, they are no longer there, » he said.

Others also take action. One of the largest Japanese beverage manufacturers, Asahi Group, has announced that tens of millions of dollars are investing to start and increase its best -selling brewing in a factory, which it has purchased last year. Asahi imports a beer brand to the United States from Italy and can therefore be influenced by possible US rates on European products. « We can’t ignore it, » said CEO of the company, Putushi Katsuki recently.

Tradition: While some US manufacturers call their sparkling wines champagne, this sparkling drink can only be made legally in the French Champagne region. / B. Guay / AFP photo

Will not change habits

Erik Liedholm, the director of the three Washington state restaurants, said he had learned about Trump’s latest threat last Thursday, when his phone began to explode from Canada and messages from friends selling Europe to Europe.

« They just asked, ‘What to do?’ I looked at the number of messages and it was just incredible, « Liedholm said. « I stayed without a promise. »

Among the messages was an email from its wine importer, which reported prices would rise.

« Our margins are still thinning, » LiEDholm said. According to him, since many shipments are already on the way, in a sense, the situation resembles times when ships have been plague and uncertainty and troubles with them.

WSJ explains how 200 % The rate, if it really came into force, would strange the final price of a regular bottle of champagne: a champagne bottle sold for $ 50 for $ 50 in retail is usually about $ 20 for the importer. With 200 % the rate of the importer would increase three times, to $ 60. If the importer and retailer retain the total $ 30 profit margling, the price of a sparkling beverage that has predominated to date would increase to $ 90.

You don’t go only to American wine. You drink French wine for no reason.

However, importers say that they are more likely to scenario that they will simply stop importing because increased prices simply would not sell output.

The tariffs of European alcohol could theoretically increase the profits of US wine breweries that compete with EU imports. For example, local sparkling wines would be useful if the prices of champagne and prosek would increase.

However, some winemakers doubt whether taxes will change the local industry, as European wines are actually a small part of the US wines sold in the US: for example, according to wine industry data analysts, Gomberg, Fredrikson & Associates, 2024. The United States imported only 32 percent. the country’s wine market circulated.

Co -River Nortwyck Restaurant and Sommelier Cedric Nicaise, said not so sure that Americans would change their alcohol consumption habits. C. Nicaise buys 30 to 35 boxes of wine every month for his restaurant. Most of them come from France, Italy or Spain.

« If you drink Burgundy wine, you can drink Pinot Noir, but you can drink a cocktail, » said Nicaise. « You don’t go to American wine only. You drink French wine for no reason. »

On the other side of the Atlantic

The EU does not import large quantities of US wines. While some US manufacturers call their sparkling wines champagne, this sparkling drink can only be legally produced in the French Champagne region.

According to Politico, Europeans responded to Mr Trump’s outrage. « It’s de facto closed the US market for EU winemakers, » stressed the European Wine Companies Committee, a well-known CEEEV abbreviation, head of Ignacio Sánchez-Recarte.

According to him, every winemaker in Europe will be the largest market in the US, and there is no alternative to either size or income level.

With 200 % the rate of champagne importer would increase three times to $ 60. If the importer and retailer retain the total $ 30 profit margling, the price of a sparkling beverage, which has predominantly, would increase to $ 90.

Pauline Bastidon from another beverage industry called « Spiritseurope », said he was very worried about the updated tariff threat. « This revenge cycle must end now! » She has not concealed out of resentment. « We encourage both sides to stop using our sector as a negotiating chip in conflicts that have nothing to do with us. »

US Secretary of Trade Secretary Howard Lutnick said in an interview with Bloomberg television that EU retaliatory rates were disrespectful. In his words, this shows that Europe and Canada do not respect Mr Trump and disrespect the American need to develop a steel and aluminum industry, which is vital to US national security. Lutnick also recommended that you take an example from Mexico and the United Kingdom, which is a more pragmatic approach to American customs duties. This can lead to lighter measures to these countries.

However, so far, the political circles of Brussels have been in peace. « To remain calm, united and determined is the only decision, » says Marie-Pierre, a member of the French Committee of the European Parliament.

« Dear President D. Brief. No need to worry. We will drink our wine, » another Belgian member of the Belgian Kathleen Van Brempt wrote on the social network X on the social network.