EXCLUSIVE: Trump's 200% Tariff Threat Could Price European Alcohol Out Of US Markets

President Donald Trump's proposal for a 200% tariff on European alcohol imports has sent shockwaves through the beverage industry, raising fears that champagne, cognac and high-end wines could soon be unaffordable for U.S. consumers and disappear from the market entirely.

In an exclusive interview with Benzinga on Monday, Marten Lodewijks, President of IWRS America, a global leader in data and analytics for the beverage alcohol industry, said there is no scenario where a tariff of this magnitude does not inflict serious damage on European alcohol sales in the U.S.

“China imposed a 220% tariff on Australian wine, and exports to China collapsed by 96%. That effectively shut down the entire export market,” he said, pointing to a precedent for how devastating such a move could be.

The Data Speaks: What Past Tariffs Tell Us

Tariffs on alcohol are not new, and past data provides insight into their potential impact.

In 2019, a 25% tariff on U.S. whiskey exports to Europe resulted in a 20% decline in sales within a year. A similar 25% tariff on Scotch whisky imports ...