Global wine trade confronts complicated obstacles in international shipments: Flying Blue edition
The wine industry in the United States is currently facing a significant challenge due to the steep new tariffs on European alcohol imports and the declining global demand for wine. These tariffs, which started on August 1, 2025, have substantial impacts on both small and large wine importers in the U.S.
For small importers, such as La Lumière Sélections founded by Wine Educator Bob Trimble, the tariffs pose a significant risk. Committing to a shipment carries the risk of losing profit or taking a loss if tariffs are increased. Some small importers have been trying to absorb some tariff costs temporarily, but sustained tariffs threaten business viability and could lead to bankruptcies among less capitalized importers.
Larger importers, like those linked to big luxury brands, might better absorb tariffs in the short term but will eventually need to increase prices to maintain margins. They may engage in more active trade negotiations or seek carve-outs, although initial U.S.-EU trade deals did not exempt wine and spirits from tariffs. Large importers might diversify sourcing or push promotional efforts, but the higher costs still likely contribute to price increases for consumers and reductions in choice.
The tariffs raise the landed cost percentage, which accumulates through wholesalers and retailers, typically resulting in 10-15% higher retail prices or more. Consumers may shift demand to domestic wines, driving prices and demand for U.S. wines up, potentially squeezing importers’ market share further. European wineries might seek alternative markets due to decreased U.S. competitiveness, potentially reducing the diversity of wine available. Exchange rate declines have compounded effective price increases by another 10-15%, further squeezing importers.
John Poggemeyer, director of wine and beer for Heinen's, notes that the tight regulation of pricing in Ohio could be severely impacted by these tariffs. Larger companies like Heinen's are also concerned about the effects of the unpredictable US tariff regime on their international programmes.
Some importers, like Flying Blue Imports, are sharing the weight of tariffs across true partners - producers, importers, and distributors. They believe that the tariffs are temporary and are in it for the long run.
The wine industry is not just about numbers and tariffs. Both Trimble and Poggemeyer highlight the importance of working with producers who are authentic, passionate, and dedicated to crafting wines of integrity and character. For consumers, this means wines with a sense of authenticity, especially authenticity of place.
Some examples of such wines include The Aleixo, Family Collection Grande Reserva Tinto, Bairrada, Portugal 2022, a mineral-driven red wine with a bold mix of black and redcurrant fruit, ironstone, and earthy minerality; The Under the Tuscan Sun, Rosso, Tuscany, Italy 2023, a medium-bodied wine with notes of blackcurrant, underbrush, black olive, and rose petals; The Monnalisa, Montepulciano D'Abruzzo, Italy 2022, a blockbuster wine with a glass-staining ruby-purple hue, ripe mulberry, blackberry jam, fig, chocolate-covered coffee beans, and soaring tannins; and The Domaine Mickaël Mothe Chablis, France 2023, a lemon-bright wine with aromas of lime blossom and wet slate.
Uncertainty is the biggest challenge for businesses, with many waiting to see what further actions the US government takes. Michael Kaiser, Executive Vice President and Director of Government Affairs for WineAmerica, describes the situation as a "giant mess".
In the face of these challenges, the wine industry must adapt and find ways to navigate this complex landscape. Whether through collaboration, diversification, or advocacy, the future of the industry depends on it.
Small importers, like La Lumière Sélections, face a potential predicament with increased prices on food-and-drink imports due to tariffs, which threatens their business viability and could lead to bankruptcies among those with lower capital. On the other hand, larger importers, such as those linked to big luxury brands, may be able to absorb tariffs short-term, but will likely pursue price increases to maintain profit margins, affecting consumers' lifestyle and finance.
