Trump’s Tariff Plans Spark Concerns Over Rising Wine Costs and Restaurant Struggles

As President Donald Trump hints at future tariffs, concerns rise among wine experts and restaurant owners in the U.S. about the potential rise in prices for imported wines. Jon-David Headrick, a Franklin resident with a passion for importing biodynamic wines from France, is one of many in the industry concerned about the impact of potential tariffs.

Headrick’s business brings unique French wines to American consumers, but he worries that future tariffs may make these wines more expensive, ultimately affecting American diners and businesses.

Rising Tariffs Threaten U.S. Wine Sales, Profits, and Small Restaurant Businesses Nationwide

The fear of rising prices due to tariffs is a real concern for both wine connoisseurs and restaurant owners. Ben Aneff, president of the U.S. Wine Trade Alliance, highlights the importance of wine sales to U.S. businesses, particularly small, family-owned establishments.

For every dollar the U.S. sends to purchase wine from countries like France or Italy, U.S. businesses make $4.52 in profit. Wine sales are a crucial revenue stream for many restaurants, and tariffs could significantly affect their ability to remain profitable.

Though tariffs on wine imports have not yet been officially announced for the current presidential term, President Trump imposed tariffs on wines from France, Germany, Spain, and the United Kingdom in 2019. A 25% tariff was placed on still wines, and this decision had a noticeable impact on U.S. businesses, particularly in Nashville. Many restaurants and importers felt the financial strain, as the cost of wine increased and margins for these businesses decreased.

2019 Tariffs Strained Restaurants, Increased Costs, Staff Cuts, and Risked Closures

Aneff discussed how the 2019 tariffs led to significant operational challenges for restaurants. Some small establishments were forced to cut staff due to increased costs, while others struggled to maintain profitability.

The result was higher prices for diners and reduced service quality, as restaurants had to cope with the additional financial burden. Aneff further warned that the economic strain could lead to restaurant closures and halt the opening of new establishments, further exacerbating the issue.

Headrick, who imports wines from abroad, emphasized that the burden of tariffs does not fall on the foreign wine producers but rather on the U.S. businesses importing the wines. American companies must pay the tariff to the U.S. government, and these costs can add up to tens of thousands of dollars.

Headrick expressed his concern for both his industry and the small farmers abroad who would be hurt by the additional financial burden, as well as the potential impact on his own business. He hopes that the U.S. government will avoid imposing new tariffs on the wine industry, as it would hurt both local and international communities.