US fight with European Union having unexpected affect on mom-and-pop liquor stores – Fox Business
Fox Business Flash top headlines are here. Check out what's clicking on FoxBusiness.com.
Wine sellers struggling to survive the pandemic are now also getting slammed by Uncle Sams fight with the European Union over aircraft subsidies.
Mom-and-pop wine importers are facing hundreds of thousands of dollars in added expenses this year due to ever-increasingUS tariffs slapped on winesimported from Europe. Its forcing these businesses to cut pay and staff and raise prices on customers.
This is going to put some people out of business for sure, said David Bowler, owner of Bowler Wine of Manhattan, an importer and distributor. Its like getting kicked when youre already down.WINE SALES EXPLODE DURING CORONAVIRUS QUARANTINESThe family-owned company was forced to pay $28,000 in tariffs earlier this month, or $16,000 more than it would have paid had two shipments from Europe arrived when they were supposed to on Jan. 11.
The slight delay of the 1,987 cases containing 23,844 bottles from mostly France to New York City were immediately subject to tariffs that became effective on Jan. 12 despite the fact that the wines were ordered and shipped before the tariffs were put in place.
Wine sellers struggling to survive the pandemic are now also getting slammed by Uncle Sams fight with the European Union over aircraft subsidies. (iStock) (iStock)
Overnight a $12,000 bill turned into $28,000, Bowler lamented.
The money grab kicked off in October 2019, when the Office of the US Trade Representative slapped a 25 percent tax on certain wines imported from France, Germany, Spain and the United Kingdom. The tariffs covered wines with less than 14 percent alcohol, including many Ross, Sancerres and Rieslings.
Things got worse on Dec. 30 when the USTR extended the tariffs to cover wines containing more than 14 percent alcohol delivering a crushing blow to the industry.
US importers, who had never paid anything more than pennies on the bottle in import duties are now forking out 25 percent taxes on some of the wines they import from the UK, Spain and on all of the wines they import from Germany and France, which is arguably the most important wine exporter in the world.
Premium cognacs that cost $38 or more per liter were also added to the latest round of costly import taxes.
AMERICAN AIRLINES LAUNCHES WINE DELIVERY SERVICE
Bowlers company, which employs 37 people including his wife and two sons, took a 10 percent hit in revenues in 2020 only the second decline in its 17 years in business, he said.
Bowler already cut his and his wifes salaries by 20 percent and senior executives pay by 10 percent. The sales reps, whose commissions plummeted last year due to restaurant closures, were paid 90 percent of their 2019 income with the help of a Payroll Protection Program loan, Bowler said.
We were expecting to be up by five percent last year before the tariffs, he said.
Manhattan-based Vintus Wines, a family-owned importer and distributor to restaurants and wine stores, is facing an eye-popping $540,000 tax bill for orders scheduled to arrive in just the first two months of the year.
And thats on top of the extra $1.8 million in tariffs Vintus paid over the past 14 months during the first round of taxes, President Alexander Michas told The Post.
Its so frustrating, Michas said. We feel like we have no control over our business.
The tariffs are meant to pressure the EU over its subsidies to Airbus, which competes with US-based Boeing and which is politically backed by France, Germany, Spain and the UK.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
But American wine importers say they are the ones being punished instead.
We werent the point of the argument, Michas said. Weve just been dragged along and everyone feels sorry for us.
To afford the extra cash outlay, Vintus has eliminated its marketing expenses, and it will not fill three new positions it had hoped to add to the family-owned business early this year.
They are kicking US businesses in the gut in the middle of a pandemic, added Ben Aneff, president of the US Wine Trade Alliance.
Aneff, who is appealing to the Biden administration to lower the tariffs, says Bordeaux labels, which generally have a higher alcohol content, are going to be hit particularly hard.
The honeymoon is over for Bordeaux, sad Aneff, adding that Bordeaux from Frances Right Bank region and wines from its Rhone Valley will now see a spike in prices.
Its not just Bordeaux. A Karine Lauverjat Sancerre that sells for about $22 at retail will soon go up to about $28, according to Bowler, which might dissuade some consumers from purchasing it. Still, demand for less expensive wines from other parts of the world or even for American wines has not increased, say importers.
If someone wants a Sancerre, thats what they want, Bowler said. Wine is not one of these things that people are willing to compromise on. This is especially true for restaurants, which like to hold a robust selection of French wines, Michas said. They need to have products that consumers know and trust, he added.
Consumers who pay on average $15 for a bottle are paying closer to $20 now or a $15 glass of Sancerre at a restaurant is likely $17 now, Michas said.
Among the wines Vintas is receiving this month and next are those from E. Guigal of the Rhone Valley, which range in price from less than $20 a bottle to hundreds of dollars.
A 2018 vintage of Chateau Troplong Mondot of the Right Bank, which sells for about $110 a bottle, will soon cost about $140 as they reach retailers, Daniel Posner owner of Grapes The Wine Co. in White Plains, NY, told The Post.
CLICK HERE TO READ MORE ON FOX BUSINESS
Even though 50 percent of his sales are French wines, Posner is holding back on bringing in some of these tariffed wines.
Posner scaled back on the number of Sancerre labels he carries from 10 to four and on everyday wines from the Cotes du Rhone region that might have cost $12, but now $15 due to the tariff.
One of his wealthy customers recently asked for a case of 2018 Chateau Lafite Rothschild, which typically goes for about $1,000 a bottle, but now itll cost $1,250 a bottle, Posner said.
I dont want my customers to pay $3,000 in tariffs, so I asked him to wait at least until the fall, when the tariff will be re-evaluated, Posner said, referring to the cost of the tariffs on a case of 12 bottles.
Read the original:
US fight with European Union having unexpected affect on mom-and-pop liquor stores - Fox Business
- European Commission Approves BRINSUPRI (brensocatib) as the First and Only Treatment To Date Approved for Non-Cystic Fibrosis Bronchiectasis in the... - November 18th, 2025 [November 18th, 2025]
- President of Slovakia before ambassadors: Slovakia co-creates the rules of the game in the European Union - European Newsroom - November 18th, 2025 [November 18th, 2025]
- Secretary-General of ASEAN meets with the European Union Heads of Missions based in Jakarta - ASEAN Main Portal - November 18th, 2025 [November 18th, 2025]
- European Union Military Assistance Mission participates in the closing Ceremony of ISEDEF 2025 Courses - EEAS - November 18th, 2025 [November 18th, 2025]
- European Union and Vietnam: A joint path to poultry farming based on immunity and prevention - Laotian Times - November 18th, 2025 [November 18th, 2025]
- Implications of Free Trade between Mercosur and the European Union - PotatoPro - November 14th, 2025 [November 14th, 2025]
- However difficult to sell, the EU must get bigger - European Union Institute for Security Studies | - November 14th, 2025 [November 14th, 2025]
- European Union's Corrugated Paper Box Market Set for Growth to 30 Million Tons in Volume and $57 Billion in Value - IndexBox - November 14th, 2025 [November 14th, 2025]
- Red Cross and the European Union call for increased and local humanitarian investment in Latin America and the Caribbean in response to rising crises... - November 14th, 2025 [November 14th, 2025]
- RUBIO: "I don't think that the European Union gets to determine what international law is. They certainly don't get to determine is how the... - November 14th, 2025 [November 14th, 2025]
- Yes, there are political refugees from the European Union - Washington Times - November 7th, 2025 [November 7th, 2025]
- Kallas: The European Union will not allow a security vacuum in Bosnia and Herzegovina - European Newsroom - November 7th, 2025 [November 7th, 2025]
- The Presidency of Bosnia and Herzegovina Evaluated as Very Successful with the European Union Strategy for the Danube Region - European Newsroom - November 7th, 2025 [November 7th, 2025]
- Transforming Local Economic Opportunities: The European Union-funded ILO PROSPER Project Officially Launched in Southern Belize - EEAS - November 7th, 2025 [November 7th, 2025]
- The European Union supports strengthening cooperation between Bulgaria and the Republic of North Macedonia, said Valentina Superti from the EC -... - November 7th, 2025 [November 7th, 2025]
- The European Union is forging a new strategic alliance with Latin America - Peterson Institute for International Economics - November 7th, 2025 [November 7th, 2025]
- UNDP, DPPA and European Union Renew Partnership to Build National Capacities for Conflict Prevention - Unric - November 7th, 2025 [November 7th, 2025]
- Red Hat introduces confirmed sovereign support for European Union - telecomtv.com - November 7th, 2025 [November 7th, 2025]
- Private security firm says European Union vessel reaches ship raided by pirates off Somalia, all 24 crew on board safe - Yahoo - November 7th, 2025 [November 7th, 2025]
- Progress in Implementing the European Union Coordinated Plan on Artificial Intelligence (Volume 1) - OECD - November 7th, 2025 [November 7th, 2025]
- European Union restricts visas for Russian nationals over Ukraine war - The Hindu - November 7th, 2025 [November 7th, 2025]
- Jumptuit Awarded Trademarks in the European Union (EU) - PR Newswire - November 5th, 2025 [November 5th, 2025]
- Romania welcomes the publication of the Annual Package on the Enlargement of the European Union - European Newsroom - November 5th, 2025 [November 5th, 2025]
- US partners with unexpected ally in faceoff with European Union: 'Could jeopardize existing and future investments' - Yahoo - November 5th, 2025 [November 5th, 2025]
- Exclusive: Zelenskyy says 'Ukraine's future is in the European Union' - Yahoo News UK - November 5th, 2025 [November 5th, 2025]
- Kaja Kallas: Trkiye remains a key partner of the European Union - AnewZ - November 5th, 2025 [November 5th, 2025]
- European Union's SAN and ABS Copolymers Market to Reach 1.2M Tons and $2.6B by 2035 - IndexBox - November 5th, 2025 [November 5th, 2025]
- European Union tries to forge new climate targets before the COP30 summit in Brazil starts next week - The Daily Reporter - Greenfield Indiana - November 5th, 2025 [November 5th, 2025]
- Navigating the grey zone: Readiness, solidarity and resolve - European Union Institute for Security Studies | - October 30th, 2025 [October 30th, 2025]
- European Union's Metal Permanent Magnet Market Poised for Steady Growth with a 3.1% CAGR in Value - IndexBox - October 30th, 2025 [October 30th, 2025]
- European Union's Refined Rapeseed Oil Market Poised for Steady Growth With a 2.3% CAGR in Value - IndexBox - October 30th, 2025 [October 30th, 2025]
- European Union slaps a 1,600-crore fine on luxury brands Gucci, Loewe, and Chlo - Know why - ET BrandEquity - October 30th, 2025 [October 30th, 2025]
- 30th European Union Film Festival in Europe: A Global Cinematic Showcase Promoting European Art, Culture, and Tourism for Audiences Worldwide - Travel... - October 30th, 2025 [October 30th, 2025]
- European Union helps Ukrainian community of Vysoke open its first preschool - Agenparl - October 30th, 2025 [October 30th, 2025]
- European Union's Plastic Tubes and Pipes Market Set for Steady Growth with a 2.4% CAGR in Value - IndexBox - October 28th, 2025 [October 28th, 2025]
- Bulgaria, as a member of Schengen, will continue to contribute to the overall security of the European Union, said the Bulgarian interior minister -... - October 28th, 2025 [October 28th, 2025]
- European Union's Flexible Plastic Tubes and Hoses Market Set for Steady Growth with 3.3% CAGR in Value Through 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Bridge and Tower Market Set for Steady Growth with 2.8% CAGR in Value - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Yoghurt and Fermented Milk Market Set to Reach 9.8M Tons and $21.2B by 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- Flags of China and the European Union together at some event or fair. Flags of the two countries as a symbol of cooperation between the two states.... - October 28th, 2025 [October 28th, 2025]
- European Union's Fruit and Berry Market Set for Steady Growth with 2.5% CAGR in Value - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Frozen Fish and Seafood Market Poised for Steady Growth with a 3.2% CAGR in Value Through 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Lithium-Ion Battery Market Set for Growth to 944 Million Units and $32 Billion by 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Frozen Dried and Smoked Fish Market Set for Steady Growth With a 1.6% CAGR - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Paper and Paperboard Market Set to Reach 80 Million Tons and $96 Billion by 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Jewelry Market Forecast to Expand With a 1.6% CAGR Through 2035 - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union's Meat Market Set for Modest Growth to 30 Million Tons in Volume and $132 Billion in Value - IndexBox - October 28th, 2025 [October 28th, 2025]
- European Union finally approves 19th package of sanctions against Russia: what it entails - - October 26th, 2025 [October 26th, 2025]
- European Union's Coated Arc-Welding Electrode Market to See Modest Growth With a +0.6% CAGR Through 2035 - IndexBox - October 26th, 2025 [October 26th, 2025]
- European Union considers banning ethanol used in hand sanitizers over cancerous fears: What this means - Times of India - October 26th, 2025 [October 26th, 2025]
- Jordanian Exports to the European Union Register Notable Growth - - October 26th, 2025 [October 26th, 2025]
- European Union's Dry Bean Market Set for Growth to 1.2 Million Tons in Volume and $1.3 Billion in Value - IndexBox - October 26th, 2025 [October 26th, 2025]
- European Union's Narrow Woven Fabric Market Poised for Steady Growth with a 2.3% CAGR in Value Through 2035 - IndexBox - October 26th, 2025 [October 26th, 2025]
- European Union among top three trade partners of Russia - Report.az - October 26th, 2025 [October 26th, 2025]
- European Union's Woven Carpet Market Set for Growth to $1.7B and 145M Square Meters by 2035 - IndexBox - October 26th, 2025 [October 26th, 2025]
- European Union Shatters Tourism Ties with Russia by Imposing Total Ban on Travel, Striking a Powerful Blow to Operators and Shaping New Travel... - October 24th, 2025 [October 24th, 2025]
- Kazakhstan and European Union continue to strengthen co-operation, marking the 10th anniversary of strategic partnership - EU Reporter - October 24th, 2025 [October 24th, 2025]
- "We have noted the recent restrictions announced by the European Union, United Kingdom and the United States on crude oil imports from Russia and... - October 24th, 2025 [October 24th, 2025]
- European Union to support Ukraine financially over next two years Zelensky - Ukrinform - October 24th, 2025 [October 24th, 2025]
- European Union agrees on new sanctions against Russia targeting its shadow oil fleet and LNG imports - Newsday - October 23rd, 2025 [October 23rd, 2025]
- Uzbekistan Deepens Partnership With European Union Turning Tourism Into A Powerful Engine For Economic Growth And Cross-Cultural Dialogue - Travel And... - October 23rd, 2025 [October 23rd, 2025]
- The European Union agrees on new sanctions against Russia targeting its shadow fleet and banning LNG imports - Yahoo - October 23rd, 2025 [October 23rd, 2025]
- The European Union agrees on new sanctions against Russia targeting its shadow fleet and banning LNG imports - Citizen Tribune - October 23rd, 2025 [October 23rd, 2025]
- European Union's Household Hand Tools Market Set to Reach 87K Tons and $1.1B by 2035 - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- 2025 UNODC and European Union Launch Regional Program to Strengthen Criminal Justice Responses to Terrorism in West Africas Coastal States - United... - October 23rd, 2025 [October 23rd, 2025]
- European Union's Rusks and Toasted Bread Market Set for Steady Growth with 2.7% CAGR in Value - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- European Union's Plum and Sloe Market Forecast to Expand With a 0.7% CAGR Through 2035 - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- European Union's Pneumatic Elevator Market Set to Reach 379K Units and $6.6B in Value - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- European Union's Urea and Thiourea Resins Market Set for Modest Growth with 1.5% CAGR in Value - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- European Union's Concrete-Mixer Lorry Market Forecast to Expand With a 0.6% CAGR in Value Terms - IndexBox - October 23rd, 2025 [October 23rd, 2025]
- European Union agrees on new sanctions against Russia targeting its shadow oil fleet and LNG imports - Times Colonist - October 23rd, 2025 [October 23rd, 2025]
- European Union to phase out Russian gas imports by end of 2027 - France 24 - October 21st, 2025 [October 21st, 2025]
- European Union's Wine Market Forecast to Expand at 0.7% CAGR Through 2035 - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Wood-Based Panels Market Set for Steady Growth With 1.1% CAGR Through 2035 - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Sugar Market Set for Growth to 17 Million Tons in Volume and $15.4 Billion in Value - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Brakes and Servo-Brakes Market Set to Reach 3.5M Tons and $21.7B by 2035 - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Wine Market Forecast to Expand at 0.6% CAGR Through 2035 - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Capacitor Market Poised for Steady Growth with 5.1% CAGR in Value - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Nitrogenous Fertilizer Market to Expand with 3.4% CAGR in Value Through 2035 - IndexBox - October 21st, 2025 [October 21st, 2025]
- European Union's Graphic Papers Market Forecast to Grow with a 2.5% CAGR in Value Terms - IndexBox - October 21st, 2025 [October 21st, 2025]