Some Wine, Alcohol Products Could Soon Cost More In NJ: Here's Why

NEW JERSEY — President Donald Trump on Thursday threatened to impose a 200 percent tariff on European wine, champagne and spirits, which could steer more New Jerseyans to domestic products.

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.

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, & 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.

New Jersey ranks 7th in wine consumption, according to a 2023 analysis by Vine Pair. In per capita consumption, New Jersey ranks 12th, with the average person consuming more than half a gallon of wine each year.

Americans in Washington, D.C. consume the most wine per capita according to the Vine Pair analysis: 1.07 gallons per person, each year. In raw volume, the vineyard-rich state of California takes the top spot, with residents drinking over 155 million gallons of vino over the course of 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 Vinetur. 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.

And for those thinking of filling their glass with local varieties, New Jersey is home to dozens of wineries and vineyards spanning the state. That includes Renault Winery, which is one of a select few American winemakers allowed to label its sparkling wine as champagne.