NORFOLK, Va. — If you're considering purchasing certain liquors for an event or celebration this year, you may want to act sooner rather than later.
Economists predict that the cost of some alcohol products could increase significantly.
This warning comes as President Donald Trump threatens a 200% tariff on European wine and liquor in response to the European Union's 50% tariff on U.S. whiskey.
"I don’t know any distiller who has expressed any excitement about the tariffs," Jack Gorman with the Virginia Spirits Board, said
Gorman said that some Virginia distilleries have already felt the sting of American products being removed from shelves in Canada.
These small businesses are not only facing immediate sales losses but are also concerned about the potential loss of investments that could help them enter new markets.
One distillery, which Gorman preferred not to name, reported spending approximately $50,000 on marketing efforts to break into the Canadian market.
In retaliation for President Trump’s tariffs on European steel and aluminum, the European Union has imposed a tariff on U.S. whiskey.
Trump's proposed 200% tariff on some European alcohol products is a direct response to this action.
"While these tariffs may seem like high-level announcements, soon you will see foreign products disappear from store shelves, or they will be significantly more expensive," Bob McNab, an economics professor at Old Dominion University, said. "If you prefer French champagne over sparkling wine from Napa, will you still buy it if the price increases by 200%?"
McNab emphasized that trade wars historically do not end well. He believes there are potential solutions but stresses that it requires dialogue among leaders.
"All I've heard is frustration and disappointment," Gorman concluded. "I haven't heard anyone think this is good for our industry in the long term."
