The U.S. wine industry is facing heightened challenges as tariffs on imported goods have escalated, impacting both importers and domestic producers. Wholesalers, who buy products from producers or importers and sell them to retailers, now face increased costs, with carrying costs rising and the need to either absorb these costs or pass them on to consumers. Industry leaders are warning that these costs may soon be passed on to consumers, as the industry struggles to maintain stable prices amid rising tariffs and inflation.
Dawson Hobbs, executive vice president of government affairs at the Wine and Spirits Wholesalers of America, highlights that tariffs are a multilayered issue, affecting everything from glass and aluminum cans to glue used in packaging. The unpredictable nature of tariff announcements adds further complexity, with the Trump administration’s fluctuating tariff policies creating uncertainty in supply chains. Hossfeld, co-owner of Hossfeld Vineyards with her husband, stated that the cost of imported materials like French oak barrels and glass bottles has increased, leading to higher operational expenses for domestic winemakers.
Costs have risen around 20% in the last 18 months, largely due to inflation and labor costs, but tariffs implemented earlier this year have also added to higher operational expenses. Hossfeld said they’re working with trade partners to absorb costs and keep prices stable. Similarly to domestic winemakers, Hobbs said many wholesalers are also absorbing the cost of tariffs, but he warned it’s not a sustainable solution. ‘Our industry has very thin margins for the most part. Most people that you talk to do believe you will start seeing real price increases, unfortunately, as we near Christmas, and as we get into the first of the year,’ Hobbs said.