CINCINNATI — President Donald Trump said Thursday he would enact a 200% tariff on all alcoholic products coming from the European Union, claiming the tariffs would be "great for the (U.S.) wine and champagne businesses" — but Tri-State businesses aren't taking kindly to the announcement.
"We represent over 100 domestic wineries, not a single one of whom is in support of any tariffs on European alcohol," said Eric Faber, president and COO of Cincinnati-based Cutting Edge Selections, an alcohol importer and distributor.
Trump seems poised to make the move in response to an escalating trade war with the E.U.
After the U.S. imposed a tariff on global aluminum and steel imports Wednesday, the E.U. retaliated by enacting a 50% tariff on whiskey from the U.S. The tariff is set to take effect on March 31.
"While we were expecting something, I don't think we were expecting something this drastic, or that would be this quickly moving in terms of it happening roughly within a three-week period," Faber said.
WATCH: How these tariffs on the E.U. could impact local businesses — and consumers
About 40% of Cutting Edge Selections' business is domestic, while the other 60% relies on imports, Faber said.
"The fear stems from more than just the tariffs. The alcohol industry in general has been facing fairly strong headwinds for the last couple of years," he said. "This is something that affects over 10 million Americans, in terms of what they do for a living."
In Newport, the Party Source reports roughly 40% of its products are imported.
"There is a profit margin that we need to build in order to keep employees paid, keep the lights on and other operating costs," said Marty Holland, store manager. "If the (import) costs go up, then the end price is going to go up the exact same."
"A tariff like this on wine only stands to make products significantly more expensive for the consumer," Faber said, especially in the U.S. alcohol industry.
U.S. alcohol producers must sell to importers or distributors, under U.S. law, who sell products to bars and restaurants. There are no direct-to-consumer sales.
"We're just trying to stay calm," said Ashley Hernandez, a manager and wine buyer at Over-The-Rhine's 1215. "But it would be pretty devastating for not just us, but local businesses all over the country."
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