Trump says a 200% tariff on European alcohol would be ‘great’ for American businesses but wine sellers say it will slam the whole industry—’including U.S. wineries’

The United States suddenly looks less bubbly for European wines.

President Donald Trump On Thursday threaten a 200% tariff In European wine, Champagne and spirits if the European Union continues to be a planned 50% tariff in American whiskey. Wine and importers said that a tariff of that size should be shutdown in European wine business

“I don’t think I’m getting ready to pay two to three times more for their favorite wine or champagne, the CEO of Township at the principal Laurel, said.

Jeff Zacharia, president of fine form retailer Zachys in Port Chester, New York, says 80% of the wine he sells from Europe. Imports depend on European wines for a large part of their distribution system, he said, and there is no enough wine to do for that.

“It has a primary negative impact on the entire US wine industry in all parts, including US spies,” he said.

Zacharia said there was more unknown today that he stopped buying wine in Europe until the picture is clearer.

“It is very difficult to make preparations if as a business you don’t have a clear path ahead,” he said. “Our preparations are different if it is 200% compared to 100% compared to 10%.”

wineAnd spirits from the 27-country European union consisting of 17% of the total consumed in the US in 2023, according to IWSR, a global alcohol specialist data. At that 17%, Italy is worth 7% – usually from wine – and the French wine, Cognac and Vodka cost for 5%.

Overall, the US imports much alcohol than its export. The $ 26.6 billion worth of foreign-made foreigners entering the country of 2022 is worth 14% percent of all US agricultural imports, according to the US Department of Agriculture. US exports $ 3.9 billion worth of beer, wine and distilled spirits of that year.

Marten Lodewijks, President of IWSR US, said a 200% tariff does not fail but the duties of imports are highly targeted.

In 2020, China imposes tariffs as high as 218% of Australian wine, which is caused by 90%, Lodewijks said. ChinaThe tariffs liftLast year, but after Australian wine industry has taken a big hit.AustraliaChinese wine trade is worth 1.1 billion dollars in Australia ($ 710 million) each year before the tariffs are placed.

European tax onAmerican Whiskeyopened with the Trump Administration’s responsesteel and aluminum tariffsexpected to goIn the impact April 1. Trump answers Thursday to a Social Media Post.

“If this tariff is not removed then, the US takes a 200% tariff to all wines, champagnes, and other EUs represented by the US and wine businesses.”

Trump is wrongthe champagnebusiness. Champagne is a legal protection wine coming from the Champagne region in France. But US Witemakers – including Trump Wintry, a Virginia Winry owned by President Eric Trump’s son – making glowing wine.

The reaction from the entire Atlantic is easy Thursday.

“We have to stop a dangerous increase in a global trading war where the first victims can be US citizens to prepare for products, ” Ettore in Coldiretti in Italy.

Italian Export Italian to US –Prosecco leads– tripled value over the past 20 years and reaches 1.9 billion euros ($ 2.1 billion) last year. In France, the US market for wines and spirits is worth 4 billion euros ($ 4.3 billion) each year.

Gabriel Picard, leading the French Federation of Exporters of Wines and Spirits, said that 200% of alcohol export tariffs to hundreds of thousands of people.

“Not a bottle will continue to be encouraged if the 200% tariff is applied to our products. All exports to the United States come in total, total, halt,” says Picard in a conversation with the Associated Press.

French transsiper grain de sail, usedpower of the seaTo send wines and other objects across the Atlantic, saying on Thursday that some winishemakers have already been canceled in the US deliveries because they look forward to tariffs.

“It has more or less frozen exports. No point hoping to send wine to the United States in these circumstances,” says Jacques Barreau, company co-founder.

Some US wine shops see an opportunity Thursday. In Washington, the Cork at Bar Bar announced a taric sales, encouraged regularly to come to stock in their favorite wines while they have cheap.

Others are surprised by energy when Trump can only undergo a 200% tariff.

“It changes with time now, right?” Mark O’Calluki, the builder of the Exit 9 Warehouse in Clifton Park, 35% of his shop, he said.

Some seem to want to stay outside the fray. Total wine, acting in 279 stores at 29 US States, did not answer a request for comment Thursday.Southern Glazer’s wine and spiritOne of the largest alcohol in alcohol in the country, did not respond to a message looking for a comment.

This story originally shown Fortune.com

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