Wine lovers will pay more to swallow. Rates give no room to breathe.

Copyright © HT Digital Streams Limit all rights reserved. Abby Schultz, Barrons 4 min Read 05 Apr 2025, 06:00 IST PRODUCTION LINE OF CHABLIS -Wine at the Domaine Louis Moreau in Beine, France. Summary foreign producers are likely to suffer from lower US sales in the largest world market for wine consumption. But US distributors, retailers and restaurants will also get a hit. Duties charged on countries around the world will increase the cost of wines in France, Italy and everywhere outside the US to consumers, while the approximately 400,000 US small businesses relying on foreign wine imports, according to the US wine trade alliance. Foreign producers are likely to suffer from lower US sales in what is considered the largest global wine consumption market, but the alliance expects US businesses to do more damage. It has a lot to do with the way the wine industry in the US is regulated under the so-called three-level system, US importers will pay the tariff when wine arrives in the country; The extra fee will be passed on to distributors, retailers and restaurants. Eventually, a consumer will pay more for their glass of French Sancerre with dinner. These new duties on the import of foreign wine will depend on where the wine is produced. Those made in countries in the European Union – including the popular wine regions of France, Italy and Spain – will be subject to 20% tariffs. Wines made in South Africa will face 30% rates, while wines from Australia, New Zealand, Argentina and Chile become the modest 10% baseline rate. The EU accounts for 72.3% of the total import of bottled wines in the US, according to Rafael Del Ray, an independent consultant on Madrid wine markets. “The net effect is that prices will rise,” said David Parker, CEO and owner of Benchmark Wine Group in Napa, California, which deals with high and rare wines. Wine already in transport, or which will be by April 4, will not be subject to rates, and wine on the way by April 8 will be taxed at the 10% base rate against the country -specific levels. Although threats of a 200% tax on European wine and spirits are a possibility, Parker, who is also president of the National Association of Wine Retailers, will be “pretty surprised” if it happened. “It would be a sting of European wine in the US,” he said. “I don’t think the government wants to kill 400,000 small US businesses. Ben Aneff, president of the Wine Trade Alliance, agreed with Parker, although he said that the fate of the 200% tariffs was ‘unclear’. [tariffs] is a positive for US wine producers, “Gabriella Macari, director of operations at Macari Vineyards in Mattituck, NY, told Barron’s. Macari, as most US wine producers, rely on distributors to place their wines with wine shops and restaurants. US wine, which is typically said. has decreased all over the world, as younger consumers either remember alcoholic drinks or consume alternatives to wine, a trend that McMillan has set out in an annual report on the wine industry over the past few years. About two-thirds of all wine consumed in the US are produced domestically. The fact “We have wine that will be more expensive to come from abroad offers an opportunity – in theory – for our domestic producers to sell more to our own consumers,” he said, although he noted that it is if “you ignore what rates do to the economy.” What is important for the consumer to understand is that rates will not reduce prices for US goods. “It only increases the price of foreign goods.” Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #Ell alcohol Companies Mint Specials