"European wine orders to the USA suspended": importers take action following Trump's tariff announcement

Stop Everything. The threat of 200% US tariffs on European wines is already having its first consequences: a halt on orders to avoid the risk of new tariffs being applied to wines currently in transit or about to be shipped. Initially, there was a rush to stock up before the new tariffs arrived, but since March 13 (the day of Donald Trump's announcement), fear has put everyone on hold. After all, the former US president did not specify the date the tariffs would take effect. The risk of having to pay an additional 200% is far more serious than dealing with a 25% increase.

US orders on standby

The confirmation comes directly from importers. In a letter dated March 14 (the "after day"), Total Wine & More informed the Italian wineries in its portfolio that it intends to suspend purchases for now. "The products," the company explains, "could arrive in the United States around the first week of April, when the new 200% tariffs might come into force. For this reason, we have made the difficult decision to put pending orders on hold until further clarification is provided."

Importers’ fears

Mary Taylor, owner of US wine importer Mary Taylor Wine, told Reuters that she currently has 16 containers of European wine en route to the United States—an amount that would wipe out "my entire net worth if 200% tariffs are applied. If I have to pay, I’m finished,"she states, adding that she is now trying to see if she can cancel some shipments.

Jeff Zacharia, president of Zachys, a fine wine retailer in Port Chester, New York, says that there are so many unknowns right now that he has stopped purchasing European wine until the situation becomes clearer. This is a significant move for a company that sources 80% of its entire catalogue from Europe: "It’s very difficult to make preparations when, as a business, you don’t have a clear path forward," he told the Associated Press. Speaking to the New York Times, Doug Polaner of Polaner Selections in New York recalls the impact of Trump's first round of tariffs on European wines in 2019: "We struggled," he admits, "but with 200% tariffs, it becomes impossible. For now, we’ll have to suspend all shipments from Europe to see what happens. What worries us most are the containers of wine already in transit, the so-called 'goods on the water.' If they arrive before the tariffs are imposed, no problem—but if they arrive after the tariffs take effect, importers will have to pay enormous duties."

Jeff Kellogg of Kellogg Select echoes this sentiment, telling the New York Times: "We might have to stop buying European wine until we have some clarity."

A losing game

The Unione Italiana Vini (UIV) has also confirmed this new trend and reported growing concerns among Italian wine producers: "The announcement of 200% tariffs is already having a negative impact on the market, with an increasing number of order cancellations for goods destined for overseas. UIV, together with European entrepreneurs from Comité Vins, is calling on the European Commission for an urgent review of the tariff lists, requesting the removal of American alcoholic beverages (spirits and wine). Given the vast disparity between the sides involved, it is crucial that these products remain outside the ongoing trade dispute."

The imbalance between the retaliatory tariffs threatened by Trump on European wines and spirits versus the same product categories exported from the United States to Europe is striking: according to UIV’s analysis, €8 billion versus just €1.35 billion—a 6 to 1 ratio that clearly highlights how much Europe stands to lose in this trade battle.