US booze importers cancel European wine shipments — and brace for devastating losses — as Trump tariffs loom

New York Post - Mar 20th, 2025

US alcohol importers are facing potentially crippling financial losses as President Trump threatens to impose tariffs as high as 200% on European alcoholic beverages. This looming tariff has led to immediate action among importers, with many canceling shipments that are not yet in transit. Grassroots Wine, a distributor based in Charleston, SC, recently canceled a $1 million order of European wines, fearing a substantial tax bill that could surpass their annual profits. The US Wine Trade Alliance is advocating for a 'goods-on-the-water' exemption to mitigate the financial impact on shipments already en route, but importers have been advised to halt further shipments from Europe due to the high risk and uncertainty surrounding the tariffs.

The tariffs are part of a broader trade dispute, with the EU delaying its planned tariffs on American bourbon in hopes of negotiating with the US administration. President Trump's proposed tariffs are a response to the EU's 50% whiskey tariff, part of a retaliatory measure against Trump's earlier tariffs on steel and aluminum imports. The potential escalation of the tariff war has significant implications for the US wine market, which relies heavily on European imports that make up 80% of its supply. The tariffs could result in reduced availability of popular wine varieties and increased prices for consumers, affecting the restaurant industry and wine retailers. This situation mirrors the 2019 tariff imposition, which caused a significant drop in French and German wine imports.

Trump Administration European Union Us Wine Trade Alliance European Alcohol Tariffs Trade Dispute Grassroots Wine Tariff Impact

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RATING

6.6

Fair Story

Consider it well-founded

The article effectively highlights the potential economic impact of proposed tariffs on European alcohol, providing a detailed account of the challenges faced by US importers and distributors. It is timely and relevant, addressing a developing trade issue with significant implications. However, the article could benefit from a more balanced presentation of perspectives, including those of government officials or tariff supporters, to enhance its comprehensiveness and impact. While it draws on credible industry sources, the inclusion of a broader range of voices and greater transparency in claim substantiation would improve its overall quality. The language and structure are clear, making the article accessible to readers, though further explanation of technical terms could enhance understanding. Overall, the article serves as a valuable contribution to the ongoing discussion of US trade policy and its effects on various stakeholders.

Accuracy

The story presents several claims regarding the potential implementation of a 200% tariff on European alcohol by President Trump, which are mostly accurate based on available data. However, specifics such as the exact date of tariff implementation and the EU's final stance on whiskey tariffs require further verification. The report accurately reflects the concerns of US importers and the potential economic impact, aligning with statements from industry figures like Harry Root and Ben Aneff. Some claims, such as the consumer stockpiling of European wines, would benefit from additional evidence or data to support them.

Balance

The article primarily focuses on the negative impacts of the proposed tariffs from the perspective of US importers and distributors. It provides substantial coverage of the economic threats posed to businesses like Grassroots Wine and the broader industry. However, it could improve balance by including perspectives from government officials or supporters of the tariff, potentially providing a more comprehensive view of the motivations behind the policy. The absence of these viewpoints may suggest a bias towards the importers' perspective.

Clarity

The article is well-structured and uses clear language to convey the potential impacts of the proposed tariffs. It logically progresses from the introduction of the tariff threat to its potential economic consequences, using quotes and statistics to support the narrative. The tone is neutral and factual, aiding in reader comprehension. However, some technical terms related to tariffs and trade policies could be better explained for readers unfamiliar with the subject.

Source quality

The story cites credible sources such as industry representatives and organizations like the US Wine Trade Alliance. These sources are authoritative within the context of the wine import industry. However, the article does not include direct quotes or statements from government officials, which would enhance the credibility and depth of the report. Including a wider variety of sources, especially those with differing viewpoints, would strengthen the article's reliability.

Transparency

The article provides some context regarding the trade tensions between the US and EU, but it lacks detailed explanations of the methodology behind the claims, such as how the 200% tariff would be enforced or calculated. There is also no disclosure of any potential conflicts of interest among the sources cited. Greater transparency about the basis of claims and the context in which they are made would improve the article's clarity and trustworthiness.