The National Association of Wine Retailers (NAWR) believes free and fair trade is the cornerstone of a robust wine economy both in the United States and internationally. When barriers to trade between countries are erected, the wine industry in the United States suffers, as do wine consumers who pay higher prices. We experienced this when the earlier round of tariffs on European Union wines was imposed in 2019 and 2020. We have every reason to believe that the recently enacted tariffs on wines imported from other countries, as well as tariffs on other goods, will result in a significant contraction of the wine market in the United States. We anticipate that wine importers, wine wholesalers, wine retailers, and domestic wine producers, along with the companies that support the industry, will be hit harder this time around, leading to significant revenue reductions, layoffs, and business closings. 

It is for this reason that NAWR strongly urges the Trump administration to reconsider and remove the across-the-board tariffs recently put in place.

The current round of tariffs comes at the most challenging moment the American wine industry has faced in decades. Inflation, increased competition, and heightened anti-alcohol rhetoric have all resulted in a significant downturn in the consumption of both American and imported wines. The increased costs of living that will result from the recently enacted tariffs, along with the significant increase in prices for wines that will result, will only push down consumption further, thereby harming the American wine industry to a degree from which many of its participants will not recover. 

Additionally, there is no reason to believe that wine drinkers will simply switch from European, South American, and Pacific nations’ wines as tariffs are laid upon them to domestically-made wines. It is a fundamental misunderstanding of wine drinkers and the wine marketplace to believe that wine is a fungible product. Champagne is not Sparkling Wine. Bordeaux is not simply Cabernet Sauvignon or Merlot. Burgundy is not Pinot Noir. And Australian Shiraz is not Washington Syrah. America’s independent fine wine retailers understand better than most that when an American wine drinker asks for Red Burgundy, they do not substitute Oregon Pinot Noir when the Burgundy is out of their price range or unavailable. They simply don’t make a purchase.

Moreover, any trade strategy that relies on the notion that tariffs will help the American wine producers is misplaced. When faced with the higher prices that will result from the across-the-board tariffs, consumers will rein in their spending. The first thing they cut back on is non-essential items like wine. This will cause significantly lower revenues for both wholesalers and wine retailers, which in turn will cause these businesses to cut back their purchases.. This, in turn, will leave domestic wine producers with fewer avenues through which to distribute their wines. 

Over the past five decades, the American wine industry has surged as Americans have become wine drinkers. The number of importers, retailers, and producers has increased to match the demand. A real consequence of the recent tariffs is that this extraordinary progress in the American wine marketplace could be significantly diminished. 

Again, we strongly urge the Trump administration to rethink and reconsider this harmful trade policy.

About the National Association of Wine Retailers
The National Association of Wine Retailers represents independent fine wine retailers nationwide. NAWR members include brick-and-mortar merchants, Internet wine retailers, wine auction houses, wine clubs, and businesses supporting the retail tier. NAWR supports its members through policy work and advocating for a free and fair playing field for the wine retail sector. More information is available at www.nawr.org

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