How Will New Tariffs Impact The Price Of Wine & Spirits in Downtown Minneapolis?

We called our daughter, Ann last week to wish her a Happy 39th Birthday and were told that she didn’t have time to talk to us because she was in meetings to discuss her company's reaction to the proposed 25% tariffs on wine. Ann is a senior brand manager for a large wine importing company.

We are pretty sure that you have all heard about the proposed tariffs by now, and are wondering what the impact might be on the prices of wine and spirits in our downtown Minneapolis store. Let's see if we can help...

Let's start with Scotch Whisky. I don't "get it"???? Scotch comes from Scotland. Scotland is part of the UK. "Brexit" goes into effect on October 31st. Effective that date, the United Kingdom will not be part of the European why include single malt scotch, but NOT blended scotch? So the duty on Glenlivet goes up, but the duty on Chivas Regal doesn’t? Furthermore, Irish Whiskey from the Republic of Ireland is included, but NOT when distilled in Northern Ireland. So, no increase on the duty on Jameson. Go figure??

Apparently, all liqueurs and cordials from the EU are included in the tariffs. Campari announced today that they are considering moving the production of Aperol and Campari to the US. Go Figure??

Wine under 14% that is not carbonated and shipped in containers smaller than 2 liter containers is subject to the tariff. Champagne, Cava, Prosecco and 3 liter bag in a box are all exempt. Go figure??

Now, here is the part that is interesting...assuming the tariffs ARE is an AD VALOREM tariff. That means that the tariff is imposed on the value that the European producer receives for his product. Any part of the cost of shipping, importer's profit, distributor's costs and profits, and retailer's costs and profits is NOT subject to the tariff. As we speak, every European producer and his importer is figuring out how to shift portions of the price of all these wines and spirits to the United States.

In other words, DON’T PANIC!! The price of your favorite imported adult beverage is not going up as much as you think it might. Also, most of these guys stop shipping around November 1st because of the increased cost to protect wine from freezing, so most wine from the EU will be shipped before the tariff goes into effect.

Anyhow, enough talk about price….let’s get to taste! So on that note, we would like to once again extend to you an invitation to an upcoming wine tasting featuring Dreyfus Ashby, happening on Tuesday, October 22nd. Call us at 612 339-4040, or send us an email at, for reservations. The cost of the event is $25, which can be used toward the purchase of anything that night.