I'm sure there will be more full-fledged coverage soon, but apparently the long-threatened tariffs on European wine and spirits (and cheeses) is indeed going to take effect, though as I write this it's unclear when exactly and whether certain wines might be exempted.
Can anyone argue that this is not a good thing for American producers who are already negatively impacted by a low exchange rate?
Historical exchange rate:
Good for American producers does not equal good for American consumers.Im more concerned about the later
Same here. I am not sure that the low exchange rate has that much of a negative impact on US producers. It is about price on the shelf or list. US wines tend to have a higher overall retail price due to taxes, production costs, labor costs, land costs, etc.
While consumers and our cellars and bank accounts will definitely feel the effects of the tariff - I think we will see the biggest impact on smaller importers.
I agree that the largest negative extranalities would be on both smaller importers and smaller boutique wine stores. Although, I don’t foresee the tariffs being more than a negotiation tactic.