Tariffs on wine are highly inefficient, as most of the damage inflicted hits U.S. companies, rather than EU companies. For every $100 of EU wine sold in the U.S., $85 goes to American businesses.
Unlike most other goods and services sold in the U.S., wine is highly regulated, requiring essentially 2 of the 3 companies that sell any single bottle of French or European wine to be American. Regulations require many American wine businesses to sell only wine and spirits, giving them no ability to spread losses from tariffs to other revenue streams.
There are more than 47,000 retail wine and spirits stores, and more than 6500+ importers and distributors, mostly small businesses. Together they have roughly 400,000 employees.
The damage to U.S. businesses from the proposed tariffs will approach $10 Billion. They would make wine prices unworkable for U.S. businesses, causing sales and revenue would drop drastically.
The current 25% tariffs on will result in 12,000 American jobs be lost. Tariffs of 100% would result in an estimated 78,000 American jobs lost.
Because of the high capital expense and long time-frame needed to develop new vineyards, U.S. domestic wine producers could not make up for these losses. It would take a minimum of 10 years to develop the increased production. #notjustwine #notariffsonwine #stopwinetariffs