Six months since U.S. President Donald Trump’s ‘reciprocal' tariffs, Karen Tso examines how the wine and spirits sector has been affected and what’s ahead for this multibillion-dollar industry.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

The transatlantic wine and spirits sector is experiencing significant challenges due to tariffs imposed by the United States. The lack of a sector exemption in recent trade agreements has left billions of dollars in trade at risk, affecting both American exports of whiskey to Europe and imports of European wine to the US.

Industry representatives report that the tariffs are impacting all levels of the supply chain, from farmers and distillers to retailers and consumers. Businesses are adapting by sourcing more local products, but uncertainty remains as policymakers and companies warn that the disruption could continue to affect prices and availability for consumers.

Transatlantic wine and spirits trade faces new normal

President Trump's tariffs have created headwinds for industries around the world including the wine and spirit sector I took a closer look at how drinks makers are coping with increased duties and what could be next for the industry It's been more than six months since u.s President Donald Trump declared Liberation Day at the White House Less than a mile down the road from this bar in Washington, DC And while the world has avoided a trade war whole industries Businesses and their consumers are still coming to grips with the new normal take the wine and spirit sector the u.s And Europe are mutually dependent last year the u.s exported roughly 700 million dollars worth of whiskey to Europe its largest export market and Americans bought almost 5 billion euros worth of European wine Despite a framework trade agreement announced back in August There was no sector exemption putting billions of dollars of trade at risk. It's a big blow on our exports It's still very early to understand which is the the complete impact of this policy But 15 percent tariff represents 700 million euros 15 percent on The 4.8 billion euros of wine that we are seeing in every year So it's a hard impact the wine and spirits business is a microcosm of the difficulties companies and Consumers on both sides of the pond are facing due to globally interlinked supply chains The american whiskey association has observed tariffs hit all three tiers of the u.s system So when you're looking at imported products, whether it's the the importer, uh, the retailer It's going to hit them and eventually be passed on to the consumer from an export standpoint exports are down right now Because of the tariff tensions and so in terms of where it hits supply chain it hits it across the supply chain It's affecting the american farmer who grows american grain. It affects the american distiller who's distilling american whiskey It affects the the uh, the you know, the bloggers who are cutting down American white oak to make the barrels jeremy pollock runs a local dc bar and knows firsthand Tariffs are affecting his business and customers certainly with drinks. We you know, maybe drop gray goose and pick up tito's You know pick up more local or american options, uh, definitely drop french wines and picked up, uh, hyper local get done some virginia wines uh in terms of food, we've dropped avocados and brought in Making your own guacamole from a pulp that is actually Still available without the tariff in america. The question remains are tariff troubles still brewing? Businesses and policy makers have warned disruption and uncertainty will trickle down to consumers and bottom lines eventually

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Transatlantic wine and spirits trade faces new normal

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Global Tariffs