5 hours Ago By Stephanie Rothman
SAN FRANCISCO (KRON) -- The wine industry is bracing for a possible 200 percent tariff on wine, champagne, and spirits imported from Europe. It’s the latest in an ongoing trade war between the U.S.
and its trading partners, in response to the European Union's threat to put a 50 percent tax on American whiskey. Jury finds ex-Antioch K-9 officer Morteza Amiri guiltThe European Union proposed the 50 percent tax on American whiskey to retaliate against President Trump’s tariffs on steel and aluminum that went into effect Wednesday. Now, the Bay Area wine industry, which is already playing catch-up from the pandemic, is caught in the middle.
Couples, friends, and colleagues capped off their workweek at San Francisco Wine Society Friday night with a glass of red or white. But how much they drink may soon depend on possible price increases linked to impending tariffs.Danielle Kuzinich, owner of San Francisco Wine Society, said, "The argument of these tariffs is that, 'Oh if European wines get too expensive, then people will just drink more California wines,' but I think you're going to see an increase on European wines and then you might end up seeing an increase on California wines as well because of the supply and demand.
"With hundreds of European labels in stock, Kuzinich said the trade war couldn’t have come at a worse time.Kuzinich added, "In California, the two biggest retailers just laid off hundreds of people because people are drinking less as it is, and if these taxes come into play at a large number, it could shut down import companies."On busy Polk Street in San Francisco's Russian Hill neighborhood, William Cross Wine Merchants and Wine Bar is also worried about how the new tariffs would affect prices.
Steven Sherman, owner of William Cross Wine Merchants and Wine Bar, said, "A Sancerre that was $20 would now be $60. People come in every day to buy their wine for dinner, so by doing that, it would really affect us greatly because then all of a sudden, the prices of everything are now almost triple."Sherman hopes they won’t have to pass on the price increase, but he said it all depends on how long the tariffs will be in place.
"Is it a short-time effect where we can get past it, or if it’s a long-time effect, I really don’t know what I would have to do," said Sherman.The California Wine Institute said in a statement, "The current dispute has never been about wine, and these tariffs will only hurt the broader wine sector, including farmers, vintners, distributors, retailers.""Fingers crossed that it's a scare tactic, but who knows," added Sherman.
The 200 percent tariff is expected to go into effect in April..
