Threatened Wine Tariffs Could Hurt The Wine Spot, U.S. Industry

CLEVELAND HEIGHTS, OH — President Donald Trump, angry over trade decisions by France and the World Trade Organization, is threatening to levy 100 percent tariffs on European products such as wine, whisky and cheese. The unexpected escalation of tensions could have severe and dramatic consequences for large corporations and locally owned business, such as The Wine Spot in Cleveland Heights, some fear.

"This is on par with prohibition, in terms of possible impact on the industry," said Adam Fleischer, owner of The Wine Spot, a wine and beer retailer.

Trump's administration is considering levying the tariffs as retaliation for two unrelated trade disputes: a French tax on digital services such as Google and Facebook, and a World Trade Organization ruling that Airbus got unfair subsidies, CNN reported.

Fleischer took to Facebook on Monday to urge his customers and supporters to contact their representatives and speak out against the tariffs. In an impassioned plea, he warned that the tariffs could hurt thousands of Americans whose employment depends on foreign wines: distributors, warehouse workers, truck drivers, importers, restaurant workers and wine shop clerks, among them.

One wine distributor told the Wall Street Journal if the tariffs are enacted, the industry could experience 10,000 layoffs just at the wholesale and distribution levels and $1 billion in lost payroll. The tariffs could also cripple American wine makers, who rely on mom-and-pop distributors and exporters who would be directly impacted by the tariffs, some believe. It would also hurt bars and restaurants such as The Wine Spot, Fleischer said.

"This is a humongous issue for us," Fleischer told Patch. "This could affect the industry at several different levels."

The Wine Spot, which has been in business for nearly a decade, has thrived as one of the anchors of a revitalized Cedar-Lee corridor in Cleveland Heights. The inner-ring Cleveland suburb has seen a renewed vitality along Lee Road, with brewers, chocolate makers, cheese makers and a slew of restaurants cropping up around The Wine Spot.

But wine sales are price-sensitive. Doubling the price of Prosecco, Cava, Rioja, Burgundy and Bordeaux would either dramatically reduce their sales or, in some cases, lead to the shuttering of companies that can't compete anymore, Fleischer said. That would squeeze The Wine Spot and similar businesses, he said — the tariffs would hurt Lee Road.

When asked if he could replace the imported foreign wines with domestic-made peers, Fleischer said it was impossible. "We don't have the ability," he said. "Too many distributors might be lost if the tariffs go through."

The prospect of foreign wines doubling in price has Fleischer and many others in the American wine industry panicking.

"We employ people who have families," Fleischer said. "We have 12 employees. Eight are full-time, with benefits. The well-being of our people should not be threatened by these tariffs."

He hopes an outpouring of outrage against the tariffs may save jobs and protect the American wine industry. "I hope there is a tsunami of outcry that hits these politicians," he said. "We need people to send the message."