Wine & Spirits Distributors NAICS 424820

Aug 8, 2025 - New Tariffs Impact Wine & Spirits

• As of August 1, wine and spirits from the European Union face a 15% US import tariff until a different deal between the two countries is reached, Reuters reports. Previously, the US tariff on European wine and spirits was 10%. Brussels would like tariffs reduced to zero or, for wine at least, to the Most Favored Nation (MFN) rates that are set on a fixed cost per liter basis, rather than in percentage terms. The Distilled Spirits Council of the United States (DISCUS) also would like to see tariffs reduced to zero. "It is extremely disappointing and utterly exasperating that the US and EU have not yet come to an agreement on spirits, which is an easy win for the United States that will help secure our economic vitality during this challenging time for the hospitality industry," DISCUS CEO Chris Swonger said in a statement.
• The global wine industry is bracing for the financial impact of President Trump’s 20% import tariff on all goods from the European Union, including wine. While the 20% tariff announced on April 2 is far less than the 200% Trump initially threatened in March, the new tariffs will affect everyone from distributors to restaurants to consumers, according to the Wine & Spirits Wholesalers of America, which notes that imported wine makes up 38% of the US marketplace. Beyond the EU, wines imported from other countries – including Argentina, Chile, Australia and New Zealand – will face 10% tariffs, while wines from South Africa will face a 30% duty and wines from Israel will be tariffed at 17%. Higher costs are the last thing the wine industry needs right now with wine sales falling due to lukewarm interest from younger consumers and competition from spirits and other alcoholic and nonalcoholic beverages.

• Year-end data from the Wine & Spirits Wholesalers of America’s (WSWA) trend tracker SipSource show 2024 was a challenging year for distributors. In 2024, total wine and spirits volume and revenue declined 5.5% and 5%, respectively, over the 12-month period. Spirits outperformed wine with volume and revenue down 3.7% and 4.3%, respectively, while total wine volume fell 7.2% and revenue was down by 6.3% year over year. Looking ahead, SipSource analysts expect favorable comparisons in Q1 to produce “slow but marked improvements” despite challenges including changing consumer preferences, potential tariffs on imported single-origin products like tequila, and supply chain disruptions. “In 2025, we should expect to see less impact from inventory management at the retail level,” said SipSource analyst Dale Stratton, adding “Retailers can only destock so far before failing to meet their consumers’ needs.”
• Producer prices for beer, wine, and distilled alcoholic beverage merchant wholesalers were flat in June compared to a year ago, after rising 5.3% in the previous June-versus-June annual comparison, according to the latest US Bureau of Labor Statistics data. Industry employment shrank 1.1% year over year in May while average wages at beer, wine, and distilled alcoholic beverage merchant wholesalers rose 6.5% over the same period to $27.61 per hour, their highest level since July 2022, BLS data show. Premiumization, which had been the driving force behind the spirits industry’s success, is facing pressure in a tightening market as consumers trim their spending on expensive wines and spirits, keeping a lid on prices.