US Wine Trade Alliance Warns 200% Tariff Threat Would Accelerate U.S. Layoffs and Cripple American Small Businesses

Industry analysis shows every $1.00 of tariff damage to Europe causes $4.52 in collateral damage to American businesses, as U.S. wine-sector layoffs continue to mount

WASHINGTON, Jan. 21, 2026 /PRNewswire/ -- The U.S. Wine Trade Alliance (USWTA) today warned that newly reported threats to impose 200% tariffs on French wine and champagne, on top of the recent threat of added 10% tariffs on goods from France, Germany and other countries, imperil an American industry already experiencing widespread layoffs and contraction.

An Industry Already Cutting Jobs

America's wine import and distribution ecosystem is already shrinking. Since early 2025, major U.S. distributors and importers have collectively laid off many thousands of American workers, citing declining volumes, higher carrying costs, existing tariffs, and prolonged market uncertainty. These layoffs have affected sales teams, logistics and transportation roles, portfolio managers, warehouse staff, and administrative employees across multiple states.

In this fragile environment, the threat of new tariffs accelerates job losses and company closings across the United States. The threats disrupt fundamental business decisions and place immediate financial pressure on U.S. importers, distributors, retailers, and restaurants that rely on imported wines to sustain their businesses.

Tariffs Disproportionally Hurt U.S. Businesses

Wine tariffs do substantially more damage to American businesses than to foreign producers. Under the U.S. three-tier system, tariffs are paid at the border by U.S. importers, then passed on to distributors, independent retailers, restaurants, hotels, and ultimately American consumers.

During the 2019–2021 tariff period, economic analysis submitted to the Office of the U.S. Trade Representative (USTR) found that every $1.00 of damage imposed on European wine exporters resulted in approximately $4.52 of collateral damage within the United States, borne almost entirely by American companies and workers.

Statement from the U.S. Wine Trade Alliance

Further tariffs on imported wine would harm many American small businesses and deepen job losses nationwide. The U.S. wine trade has already seen thousands of American workers laid off as the market contracts. A 200% tariff—even as a threat—would freeze commerce, accelerate layoffs, and punish Americans that have no role in geopolitics.
"Tariffs don't hit foreign producers—they hit businesses like mine," said Harry Root, Owner of Grassroots Distribution in South Carolina. "When costs suddenly spike or inventory becomes uncertain, small distributors are forced to pull back immediately. That means fewer purchases, fewer sales routes, and staff cuts. A 200% tariff would be catastrophic for small, independent distributors and the communities we serve."

About the U.S. Wine Trade Alliance - https://winetradealliance.org/
The US Wine Trade Alliance (USWTA) advocates for the zero tariffs on imported wine to the United States by representing all levels of the US wine industry. Through coalition building, grassroots initiatives, and direct lobbying, the USWTA unites American importers, wholesalers, retailers, restaurants, and producers with a common goal: showing how wine tariffs do more harm than good. 

Contact:
Michelle Erland
Colangelo & Partners
[email protected]

SOURCE US Wine Trade Alliance