​Tariffs Proposed On Some Wine, Alcohol Products: What To Know In CA

CALIFORNIA — President Donald Trump on Thursday threatened to impose a 200 percent tariff on European wine, champagne, and spirits, which could steer more Californians to domestic products and raise costs on imported wine and spirits.

Trump threatened the tariffs in the latest salvo in an escalating trade war, after the European Union said it was considering a 50 percent tariff on American whiskey in response to Trump’s steel and aluminum tariffs. At the same time, provinces in Canada already pulled Californian wines and American spirits from shelves due to the tariff war. The moves inject a great deal of uncertainty into the alcohol industry.

Trump said on his Truth Social platform Thursday that the European Union, long one of the closest U.S. allies, is “one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky.”

“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all wines, champagnes, and alcoholic products coming out of France and other E.U. Represented countries. This will be great for the Wine and Champagne businesses in the U.S.” he said.

Vineyards in Southern California’s Temecula Valley Wine Country and in Northern California’s Napa, Sonoma, and Paso Robles Wine Countries are poised for local and U.S. growth in 2025.

According to the California Association of Winegrape Growers, the wine and winegrape sector employs 325,000 Californians, generates $57.6 billion in annual economic activity, pays $7.6 billion in taxes annually, and attracts more than 23 million tourists to wineries annually. California's wine-type grape acreage is estimated at 610,000 acres.

The Wine Institute reports that California produces an average of 81 percent of total U.S. wine production

California, home to the highest population and the highest number of vineyards, consumed the most wine across the nation, according to a Vine Pair survey. More than 155 million gallons were consumed statewide in 2021, according to the study. In per capita consumption, California ranks sixth in per capita consumption, with the average person consuming about .61 gallons of wine a year.

Last year, the United States imported $6.79 billion worth of wine from 73 countries, with France and Italy accounting for 70 percent of it, according to Vintur. France led in value, with $2.506 billion in imports, followed by Italy, with $2.253.

Italy was the largest supplier by volume, exporting 353.9 million liters to the United States. Canada ranked second with 203.8 million liters, and France was third with 171.9 million liters exported. Spain ranked as the fourth-largest supplier by value, but was seventh in volume.

A spokesperson for the European Commission told NBC News the region’s trade minister has already contacted his American counterparts and that “calls are being prepared.”

The U.S. is the world’s largest import market for both wine ($4.9 billion in annual sales) and champagne ($1.7 billion), but ranks fifth among all nations in exports (about $1 billion), according to World Bank data. U.S. exports of champagne and sparkling wine total just $67 million, 12th in the world.