Spirits could soon be high – at least that’s the concern for some alcohol buyers shopping at a popular family-owned grocery store chain.
Stew Leonard’s wine and spirits president Blake Leonard said Monday on FOX Business that President Donald Trump’s threat of imposing a 200% tariff on European alcohol imports has inspired some shoppers to head off a potential price hike and stock up on their favorite drinks.
“Over the weekend… customers were stocking up, and it is an uncertain time,” Leonard told Maria Bartiromo. “We don’t know what’s going to happen, but it doesn’t hurt to go out and grab your favorite bottle of wine or spirit right now, especially tequila or champagne.”
TRUMP THREATENS 200% TARIFF ON FRENCH WINE, OTHER EU ALCOHOL PRODUCTS
Trump issued the tariff threat after the European Union recently announced it would proceed with a planned 50% tariff on American whiskey, writing in part on Truth Social that placing tariffs on European beverages “would be great for the Wine and Champagne businesses in the U.S.”
His threat comes amid a flurry of other imposed tariffs and tariff proposals.
The proposed tariffs on European alcohol products would target popular items like French and Italian wines, potentially driving U.S. consumers to consider wines and spirits produced domestically.
For one example, Leonard held up a bottle of European champagne that typically sells for around $60. Californian sparkling wines made in the same style sell for approximately half the price.
TRUMP’S 25% TARIFF INCREASE ON ALL STEEL, ALUMINUM IMPORTS TAKES EFFECT, PROMPTING RETALIATION FROM EUROPE
“You do have a lot of those opportunities where you can switch consumers. During COVID, as we saw, they had to pivot. They had to try something new,” she said.
“[It’s] the same thing here, Sancerre from France can only be made in that certain region. You can go and find a great bottle of some of your blanc from California, so consumers will have to do that because the cost of these imported products would be so expensive on the shelf.”
On the other hand, products like tequila, which can legally only be made in Mexico, could pose a challenge to shoppers if tariffs on alcohol imports were to be imposed there as well.
“Our suppliers… they’ve stocked up. They’ve been planning for this. They really anticipated this coming, so they’ve stocked their warehouses with as much wine and spirits as they can right now to hold this over for about six months,” Leonard said.
Half of the wines and spirits Stew Leonard’s currently sells come from Europe. Leonard said the tariff would impact the sale of those products.
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FOX Business’ Daniella Genovese contributed to this report.
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