Explained very well. As importer/distributor it is much appreciated. After finally coming out of the covid slump, we get hit with this situation. Simply devastating

Are these tariffs a serious proposal, or just a negotiating tactic? I hope it's the latter. But the reality is that even the discussion of them has negative consequences for American wineries. Their implementation would usher in a new era with much greater and more unpredictable dangers. 11 & end 🧵/

A producer like #TablasCreek cannot sell directly to restaurants and retailers in most states. So, our success is dependent upon distributors. Many of our distributors get the majority of their business from European wines. For those distributors, the proposed tariffs amount to a death sentence. 2/

Could American wines fill in the gap? Not for years. American wine production is currently ~300 million cases. Consumption of wine in the USA is ~375 million cases. It takes roughly five years for new plantings to produce grapes, be fermented and bottled, and eventually reach the market. 3/

The American wine ecosystem is already under record strain, with layoffs at the country's two largest distributors. If a major producer or distributor should declare bankruptcy the cascade of impacts on their suppliers and customers would almost certainly cause other failures. 4/

If European wine is targeted in a new round of tariffs, it's very likely that American wine will be on the list of reciprocal targets. Last year at #TablasCreek we invested over $42,000 to grow our sales in our export markets, and saw significant growth. Prospects for 2025? Looking shaky. 5/

Would tariffs hurt European producers? Absolutely. But because of the channels that alcohol must follow, Americans would be hurt more. The US Wine Trade Alliance has calculated that for every $1.00 in damage tariffs would inflict on the EU, they cause $4.52 in losses to American businesses. 6/