Imported Wine Orders Plunge 30 Percent as U.S. Tariffs and Inflation Squeeze Holiday Shoppers

Wine shoppers across the United States are facing higher prices and fewer choices as they prepare for Thanksgiving this year. Retailers and importers say a combination of tariffs, inflation, and shifting consumer preferences is making it more difficult to stock shelves with a wide range of bottles, especially imported wines.

At McCabes Wine & Spirits in Manhattan, owner Daniel Mesznik has seen prices rise between 5% and 12% over the past year. He attributes the increases to tariffs, shipping costs, manufacturing expenses, and labor. “It’s the reality of the tariffs, shipping, manufacturing and labor,” Mesznik said. He noted that while his store tries to keep price hikes minimal for customers, many shoppers are aware of the broader economic pressures affecting the wine industry.

The Trump administration’s 15% tariff on European Union wine imports has been a major factor in driving up costs for retailers. Many stores are struggling to absorb these increases while remaining competitive. Importers are also feeling the strain. Elenteny Imports, which supplies wine to about 9,000 retailers and restaurants nationwide, reports that its wine sales have dropped 13% compared to last year.

Industry data shows that wine consumption in the U.S. has declined by 3% from 2019 to 2024 and is projected to fall another 4% by 2029. Marten Lodewijks, president of alcohol data firm IWSR, explained that consumers are increasingly turning to spirits and ready-to-drink beverages instead of wine. These alternatives are often less expensive and come in more convenient packaging.

The impact on imported wines is especially pronounced. Elenteny Imports says orders for imported wines are down nearly 30% for 2025 so far. Orders from France have dropped by half, while Italian wine orders have fallen by two-thirds. CEO Alexi Cashen said that even domestic wines have not benefited from the tariffs as intended.

Retailers like McCabes Wine & Spirits are adjusting their offerings in response to these changes. After a lengthy renovation, Mesznik expanded his tequila selection by 40%, moving agave spirits to a prominent spot in the store. Tequila and mezcal have become more popular because they are exempt from tariffs under a free trade agreement with Mexico signed in 2018.

Wine once accounted for about 70% of McCabes’ annual sales but is expected to drop to 65% this year as agave spirits gain ground. The shift is part of a broader trend as retailers streamline their selections due to falling demand for alcoholic beverages overall.

Mike Veseth, a wine economist, said many businesses have already reduced their wine offerings as demand drops. He warned that shoppers may need to search harder than usual to find specific brands or bottles this holiday season.

Legal uncertainty is also weighing on the industry. An upcoming Supreme Court decision on the legality of tariffs has made it difficult for businesses to plan investments or set long-term pricing strategies.

Mid-priced wines in the $40 to $50 range are struggling most in today’s market, according to Cashen at Elenteny Imports. Lower-priced bottles and premium wines continue to sell well, highlighting a growing divide among consumers.

Government data shows that bottled wine prices have increased nearly 20% over the past 25 years and about 8% over the past decade. With Thanksgiving approaching, many hosts may find themselves paying more for their favorite bottles or having fewer options at local stores as importers cut back on orders and retailers adjust their inventories.