200% wine tariff threat could ‘freeze commerce’ and accelerate US job losses
The US Wine Trade Alliance says proposed tariffs on French wine and champagne risk accelerating job losses across the American wine sector, with domestic businesses bearing the brunt of the impact.
The US Wine Trade Alliance (USWTA) has warned that reported threats to impose 200% tariffs on French wine and champagne could further damage an American wine industry already facing widespread layoffs and contraction.
The warning follows reports of potential 200% tariffs, alongside a recent threat of an additional 10% tariff on goods from France, Germany and other countries. According to the USWTA, the measures would place further strain on a sector that has been cutting jobs since early 2025.
Layoffs already mounting
The USWTA said the US wine import and distribution ecosystem is already shrinking. Since early 2025, major US distributors and importers have collectively laid off many thousands of American workers, citing declining volumes, higher carrying costs, existing tariffs and prolonged market uncertainty.
The job losses have affected sales teams, logistics and transportation roles, portfolio managers, warehouse staff and administrative employees across multiple states.
Against this backdrop, the trade body said the threat of new tariffs is accelerating job losses and company closures across the US. It added that tariff threats disrupt fundamental business decisions and place immediate financial pressure on importers, distributors, retailers and restaurants that rely on imported wines to sustain their businesses.
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Disproportionate impact on US firms
The USWTA argued that wine tariffs do substantially more damage to American businesses than to foreign producers. Under the US three tier system, tariffs are paid at the border by US importers and then passed on to distributors, independent retailers, restaurants, hotels and ultimately American consumers.
During the 2019–2021 tariff period, economic analysis submitted to the Office of the US Trade Representative found that every $1.00 of damage imposed on European wine exporters resulted in approximately $4.52 of collateral damage within the United States, borne almost entirely by American companies and workers.
The alliance said that further tariffs on imported wine would harm many American small businesses and deepen job losses nationwide. It warned that a 200% tariff, even as a threat, would freeze commerce, accelerate layoffs and punish Americans with no role in geopolitics.
“Tariffs don’t hit foreign producers—they hit businesses like mine,” said Harry Root, owner of Grassroots Distribution in South Carolina. “When costs suddenly spike or inventory becomes uncertain, small distributors are forced to pull back immediately. That means fewer purchases, fewer sales routes, and staff cuts. A 200% tariff would be catastrophic for small, independent distributors and the communities we serve.”
The US Wine Trade Alliance advocates for zero tariffs on imported wine to the United States, representing all levels of the US wine industry, including importers, wholesalers, retailers, restaurants and producers.
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