Who would pay $ 28 for a $ 14 glass of wine? Not many people. And it is ultimately American companies that risk paying the costs of successive tariffs imposed by the Trump administration on European wines.
“I had never fired anyone for economic reasons until October 18”, when 25% customs sanctions were imposed on European products, notably French, German or Spanish wines, explains Dan Kravitz.
Since that date, the founder of Hand Picked Selections, a company that imports wines from French Provence and Spain, has had to lay off four of its 13 full-time employees, as well as two part-time employees, including his own son.
“During my 35 years of activity, I had separated from eight or 10 people. All had seen it coming and most expected it,” he said.
Ironically, he started importing wines so he could spend more time with his young son, eager to slow down after years of working in the restaurant business.
The burst of customs duties imposed in the autumn had come to conclude a 15-year-old battle between the United States and Europe, around subsidies granted to Airbus.
French sparkling wines, including the famous champagne, are now the object of President Donald Trump’s wrath: he threatens to increase customs duties on these products by 100% in retaliation this time for the French tax on the digital giants.
“With an increase of 100% … your glass of wine at $ 14 becomes overnight a glass at $ 28. It is not viable for anyone,” laments Matt Cirne, manager of Verjus, a bar in San Francisco .
The risk, alert these professionals, is that consumers, discouraged by the prices which have become exorbitant, will turn to cheaper alternatives from California or Australia.
This would jeopardize hundreds of American jobs related to the import and sale of European products.
– Up to 78,600 jobs –
“They may be imposing a penalty on the European Union, but this will directly penalize small businesses in America, as well as consumers,” argues Shelley Lindgren, wine manager and co-director of the Italian restaurants A16, in San Francisco and Oakland, in California.
“We are all going to lose big and maybe some companies will close for something totally unrelated to food and wine,” she adds.
According to the professional organization of American spirits companies, the Distilled Spirits Council of the United States, “jobs have been cut and recruitments suspended” due to the sanctions, and “up to 78,600 jobs could be cut in the United States if these customs duties are maintained or increased “.
Importers are now working with their suppliers and wholesalers, and most are considering sharing the burden so that prices paid by consumers can be reduced as much as possible.
Dan Kravitz explains that he also had to put on hold certain investments he had planned, including a rosé wine project in a can, to regain ground on local beers, very popular with American consumers.
And, he says, 100% customs duty would force him to shut down. “I will sell the remaining bottles to pay the bills, put what is left in my pocket, and it will be the end of my career.”
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