US Wine Shoppers Face Higher Prices and Thinner Options Due to Tariffs
As Thanksgiving approaches, many Americans are likely thinking about their holiday wine purchases, but this year's festivities may be marred by higher prices and fewer options at local wine shops. The culprit behind these trends? Steep tariffs imposed on imported wines.
Over the past 25 years, bottled wine prices have risen nearly 20%, while over the past decade, they've increased by 8%. Climate change, inflation, and rising production costs are contributing factors to these price hikes. For example, wine prices at one Manhattan shop increased between 5% to 12% this year due to tariffs, shipping, manufacturing, and labor costs.
To strike a delicate balance, many shops are working to minimize the impact of these costs on customers while dealing with the higher upfront expenses. "We're doing our best to keep those increases to a minimum for our guests," said Daniel Mesznik, owner of one such shop. However, he acknowledged that some customers may be receptive to understanding the challenges posed by tariffs.
Tariffs have a disproportionate impact on wine importers, with sales declining 13% year over year. The US wine market is expected to continue contracting, with wine volume consumed in the United States projected to fall another 4% from 2024 to 2029. This decline can be attributed to shifting consumer preferences towards spirits and canned cocktails.
The COVID-19 pandemic may have led to a post-pandemic "frothiness" that has since subsided, contributing to this downward trend. Elenteny Imports, a logistics company working with 9,000 retailers and restaurants, reported a nearly 30% decline in order volumes for imported wines year-to-date.
Domestic wines are also not selling well this year. The tariffs imposed by President Trump's administration were intended to support domestic wine production but have ultimately had the opposite effect. To adapt to these changes, Mesznik's shop has shifted focus from wine to tequila, adding 40% more brands and types of spirits and moving them to the front of the store.
Tequila and mezcal are exempt from tariffs under a free trade agreement with Mexico, which may be why they're seeing increased demand. This shift in consumer preferences means that wine sales will likely drop to 65% of Mesznik's annual sales this year, down from roughly 70%.
Smaller selections of imported wines can now be expected at local shops due to drastically reduced orders coming in from overseas. Elenteny's data shows a 50% decline in French imports and a 66% decline in Italian imports.
Retailers, distributors, and restaurants have streamlined their wine offerings in response to declining overall demand for alcoholic beverages, including wine. Consumers may need to search more than usual to find particular brands. The upcoming Supreme Court decision on the legality of tariffs adds to this uncertainty.
Mid-priced wines between $40 and $50 struggle the most under these conditions, while low-end bottles and premium wines are selling well, underscoring a "K-shaped" economy with winners and losers. To adapt, Mesznik's shop is ordering "smarter," buying from fewer wholesalers that offer deals when purchasing more cases.
With wine sales on the decline and tariffs making things even tougher for importers, it remains to be seen whether US consumers will find the perfect bottle of wine to pair with their Thanksgiving meal this year.
As Thanksgiving approaches, many Americans are likely thinking about their holiday wine purchases, but this year's festivities may be marred by higher prices and fewer options at local wine shops. The culprit behind these trends? Steep tariffs imposed on imported wines.
Over the past 25 years, bottled wine prices have risen nearly 20%, while over the past decade, they've increased by 8%. Climate change, inflation, and rising production costs are contributing factors to these price hikes. For example, wine prices at one Manhattan shop increased between 5% to 12% this year due to tariffs, shipping, manufacturing, and labor costs.
To strike a delicate balance, many shops are working to minimize the impact of these costs on customers while dealing with the higher upfront expenses. "We're doing our best to keep those increases to a minimum for our guests," said Daniel Mesznik, owner of one such shop. However, he acknowledged that some customers may be receptive to understanding the challenges posed by tariffs.
Tariffs have a disproportionate impact on wine importers, with sales declining 13% year over year. The US wine market is expected to continue contracting, with wine volume consumed in the United States projected to fall another 4% from 2024 to 2029. This decline can be attributed to shifting consumer preferences towards spirits and canned cocktails.
The COVID-19 pandemic may have led to a post-pandemic "frothiness" that has since subsided, contributing to this downward trend. Elenteny Imports, a logistics company working with 9,000 retailers and restaurants, reported a nearly 30% decline in order volumes for imported wines year-to-date.
Domestic wines are also not selling well this year. The tariffs imposed by President Trump's administration were intended to support domestic wine production but have ultimately had the opposite effect. To adapt to these changes, Mesznik's shop has shifted focus from wine to tequila, adding 40% more brands and types of spirits and moving them to the front of the store.
Tequila and mezcal are exempt from tariffs under a free trade agreement with Mexico, which may be why they're seeing increased demand. This shift in consumer preferences means that wine sales will likely drop to 65% of Mesznik's annual sales this year, down from roughly 70%.
Smaller selections of imported wines can now be expected at local shops due to drastically reduced orders coming in from overseas. Elenteny's data shows a 50% decline in French imports and a 66% decline in Italian imports.
Retailers, distributors, and restaurants have streamlined their wine offerings in response to declining overall demand for alcoholic beverages, including wine. Consumers may need to search more than usual to find particular brands. The upcoming Supreme Court decision on the legality of tariffs adds to this uncertainty.
Mid-priced wines between $40 and $50 struggle the most under these conditions, while low-end bottles and premium wines are selling well, underscoring a "K-shaped" economy with winners and losers. To adapt, Mesznik's shop is ordering "smarter," buying from fewer wholesalers that offer deals when purchasing more cases.
With wine sales on the decline and tariffs making things even tougher for importers, it remains to be seen whether US consumers will find the perfect bottle of wine to pair with their Thanksgiving meal this year.
I don't think it's fair to say that US wine shoppers are being taken advantage of by tariffs. I mean, we all know how expensive things can get these days. It's not like they're being ripped off or anything. Sure, the prices might be higher and there might be fewer options available, but that's just the way the market goes sometimes.
I'm sure most people can understand that.
Wouldn't that be weird if they did, though? 
, I'm so down on this tariff thingy 
. It's like they're taking a big ol' sledgehammer to the wine industry 
. First off, prices are going up and options are getting slimmed down 
. And it's not just about the US either, it's got a ripple effect on other countries too 
.
.
. But this is just so extra 
. And now people are getting stuck with fewer wine options and higher prices? It's just not right 
.
, maybe the new trade agreement or whatever 
will help bring some relief to the industry. But for now, it's like, wine lovers are stuck in a tough spot 
.
. And what really gets my goat is that some wine shops are having to close down because they can't afford the tariffs anymore. We need to support local businesses and importers, not punish them with even more taxes 
. I mean, I get that climate change and inflation are real problems, but do we have to make it worse by slapping on even more tariffs? It's just so frustrating 
. Now it's like tryna find a unicorn! Tariffs are killin' the industry and it's affectin' everyone who works in it. I got a buddy who owns a small import shop and he's strugglin' to keep up with the costs. It's not just wine, it's the whole supply chain. They're gonna have to get creative if they wanna stay in business. And honestly, I don't blame 'em for shiftin' focus to tequila 
. Now I'm just hopin' they can find a way to make it work for everyone, not just the big guys 
like, good for them, but we should be supporting our local wine scene, not abandoning ship. I've been to that one shop Mesznik mentioned and they have some amazing wines...but yeah, now it's all about the tequila vibes 
.
️, right?! Anyway, gotta keep my eyes peeled for those mid-priced wines that are still selling well...guess I'll be scouring the shelves this Thanksgiving season 
meanwhile, tequila is becoming the new "it" spirit, lol 
guess that's what happens when imports get cheaper and domestic wines are struggling. anyway, hope everyone has a great thanksgiving, but wine shopping might be a real challenge this year 
. Can't even get a good bottle without breaking the bank. And it's not like we're getting more options either, smaller shops are gonna have less of 'em too. I'm all for supporting local wine farms, but come on, who can afford that? Not me, that's for sure 
. Hope all this doesn't leave our Thanksgiving tables feeling a little... dry 
. And who knows, maybe we'll find some amazing new tequilas to try! 
.