London — Producers and importers of alcoholic beverages say President Trump’s so-called “Liberation Day” tariffs will hit many American drinkers right in the wallet, with price hikes on some favored tipples even exceeding the rates of the levies he’s imposed.
On April 2, Mr. Trump announced what he called “reciprocal tariffs” on virtually every nation the U.S. does trade with. Despite stock markets around the globe descending into tumult and economists warning for months that it will be consumers who pay the price for the levies, Mr. Trump has not backed down, insisting the measures will help the U.S. balance its trade deficit with other nations in the longer term.
But in the near term, many Americans’ adult beverages of choice, including European wines and Scotch whisky, are likely to come at more of a premium, according to industry insiders.
Bartholomew Broadbent, who owns the Virginia-based wine wholesaler and importer Broadbent Selections, warned the impact on retail prices in the U.S. is going to be “a lot worse than people think.”
Mike Blake/REUTERS
French wines, as an example, will be subject to 20% tariffs under the measures announced by Mr. Trump. But Broadbent told CBS News the real-world price increase will be closer to 30%, because the cost of the tariff will be compounded at every stage of a bottle or crate’s journey to a store shelf — with producers in France and other nations, along with importers like himself and then distributors and retailers all adding their own mark-ups.
“The price is going to have to go up,” he said.
In real terms, Broadbent estimated that the retail price on a bottle of wine that currently sells for $9.99 could go up to $13 or $14.
Broadbent, whose company imports wines from 11 different countries and it also works with wineries in California, said more than 80% of his business will now face new tariffs. Wines from South Africa will be the most heavily impacted, he said, as the White House has hit the country with a steep 30% tariff.
“I don’t see a single person who can benefit from this,” Broadbent said. “Even the wineries in America will suffer badly because they’re all buying barrels and corks from Europe.”
The tariffs sent shockwaves through the global wine industry, with France’s Bourgogne Wine Board (BIVB) warning the levies risked “pushing our wines past a psychological price threshold.”
Bourgogne — or the Burgundy region as it’s known in English — exported nearly 21 million bottles of wine to the U.S. in 2024, according to the BIVB, which agreed with the assessment that Mr. Trump’s tariffs will have a negative impact on everyone, from French exporters and their distributor partners to American consumers.
“The industry deeply regrets this decision,” the BIVB said in a press release
The people who make, sell and enjoy Scotland’s world renowned distilled spirits are also staring down the barrel of Mr. Trump’s tariffs. Last year alone, about 132 million bottles of Scotch whisky were imported into the U.S. market, according to the Scotch Whisky Association.
The mood in Scotland is one of “frustration and uncertainty,” according to Drew McKenzie Smith, who founded and runs the Lindores Abbey Distillery just north of Edinburgh.
Lindores Abbey Distillery
McKenzie Smith estimated that the 10% baseline tariff Mr. Trump imposed on the U.K. would see the price of a bottle of his Scotch hiked by about the same amount for American consumers. So a bottle that currently costs $60 will soon jump to $66, be believes.
While that “may not sound severe,” McKenzie Smith told CBS News, “it still adds a meaningful burden — especially for smaller producers like us.”
He said while larger Scotch whisky brands may be able to offset costs across multiple markets, but for smaller distilleries, the tariffs could mean devastation.
