It remains a perilously weird time to buy, sell, make, or drink wine in America. The global pandemic, the unprecedented climate change events, the ongoing devastation to the restaurant industry—all these would be bad enough. But there’s one big top-down fuck-you squeezing the wine industry from all sides, and that’s the lingering impact of Donald Trump’s trade war and associated wine tariffs.
You’ll recall these tariffs, levied at 25%, as posing a sort of existential threat to the wine industry back in early 2020, before Coronavirus said “hold my wine-beer” and taught us a thing or two about metaphysical dread. Those tariffs are still here, and in fact, increasing, reports Market Watch:
Wine vendors battling to survive the coronavirus pandemic are now also getting slammed by the U.S.’s fight with the European Union over aircraft subsidies.
Mom-and-pop wine importers are facing hundreds of thousands of dollars in added expenses this year due to ever-increasing U.S. tariffs slapped on wines imported from Europe. It’s forcing these businesses to cut pay and staff — and raise prices for customers.
“This is going to put some people out of business for sure,” said David Bowler, owner of Bowler Wine of Manhattan, an importer and distributor. “It’s like getting kicked when you’re already down.”
Bowler, and many other importers, are looking at massive cost increases for wines from Europe, as a held-over vestigial phantom limb of the previous administration’s failed trade policies.
But didn’t we like, switch presidents? Why is this still happening? And where’s my $2000, now that you mention it? All of that’s still up in the air, writes Food & Wine:
The Trump administration may have ended, but the tariffs it imposed on wine and other alcoholic beverages will remain—at least for the time being. On Friday, the Office of the United States Trade Representative (USTR)—which is currently led by the Biden-appointed acting-representative Maria Pagan—formally announced that it would not be revising these tariffs which are tied to a lasting dispute between Boeing and Airbus.
That said, help may be on the way. Biden’s pick for United States Trade Representative, Katherine Tai, is still awaiting a confirmation vote. She is being widely linked to a resolution to the simmering trade dispute, bringing with it relief to American wine importers, retailers, and drinkers. CNBC reported that Marjorie Chorlins, senior VP of European Affairs at the U.S. Chamber of Commerce, has made the following claim: “There’s really nothing left but to reach a deal.”
Nothing left to do but reach a deal… and sit here drinking patiently.
Jordan Michelman (@suitcasewine) is a co-founder and editor at Sprudge Media Network.
