(NewsNation) — Under a 200% proposed tariff on imported alcoholic beverages, many summer favorite cocktails could become significantly more expensive.
The 200% tariff could more than double the cost of European wine and other alcohol for U.S. distributors, which would almost assuredly trickle down to U.S. bars and restaurants and eventually to American consumers, Michael Bilello, the executive vice president of strategic communications for Wine and Spirit Wholesalers of America, told NewsNation.
“If the intention of tariffs is to impose some discomfort on other countries, what we respectfully ask the administration to consider is that these will likely become burdens on U.S. businesses and U.S. consumers,” Bilello said.
Prosecco, champagne and other European wines
One of the hardest hit beverages would be wine imported from Europe, particularly the selections that cannot be made in the U.S.
Prosecco, a sparkling white wine that comes from nine Italian provinces, overtook champagne as the top-selling wine in the U.S. Champagne, which can only be produced in the Champagne region of France, is routinely used for U.S. celebrations, which helps to drive U.S. sales.
The Associated Press reported that with the 200% tariff, a previously untariffed $15 bottle of Prosecco would jump to $45 should the 200% tariff be imposed.
Additionally, Bordeaux, a popular red wine produced in southwest France, also falls into the single-origin category that could dramatically hit U.S. businesses should the tariff be imposed. Bilello says that 35% of American wine and spirit sales are generated by products imported from Europe.
“We want toasts not tariffs,” Chris Swonger, Distilled Spirits Council president and CEO, said in a statement issued by the organization.
Cognac, Aperol and other spirits
Cognac, a variety of brandy named after a commune in Cognac, France, and Aperol, the Italian base for a popular summertime cocktail, are among the products that would be included in the tariff against European countries.
Although spirits sales may not be as affected as the wine industry, Trump’s actions against other countries have already impacted American drinkers.
Could Guinness cost more this St. Patrick’s Day?
Beer sales, which grow significantly around St. Patrick’s Day, could also be hit. Although Guinness is brewed domestically in Baltimore, other brews, including those from companies in Germany, could be hit.
While Trump previously imposed tariffs during his first presidency, the steep nature of the tariff he suggested against E.U.-represented countries would not only be disruptive but economically devastating to U.S. companies.
Tequila already affected by Mexico tariffs
Trump previously announced a 25% tariff on products coming from Mexico, which would directly impact tequila, which can only be legally produced in specific regions of Mexico. Tequila remains the base for the margarita, the No. 1-ordered alcohol beverage in America, Bilello said.
Can the US make some of these spirits and wines?
Although some U.S. states produce alcoholic beverages like California, Washington and Oregon wines or Champagne-produced products that would be otherwise directly affected by the tariffs, Bilello said there is not enough production happening to fill the gap that would be created.
Some U.S. manufacturers have begun making agave-produced spirits to replicate the plant (tor piña) that serves as the base of tequila. However, agave plants need 7 to 9 years to mature, Bilello said, again making the U.S. reliant on foreign producers.
“Importers and wholesalers will be incapable of absorbing a 200% tariff on these products,” Bilello told NewsNation.
“There’s little doubt, there’s zero debate on this. This is going to be more expensive for consumers and American businesses,” he added.
