Trump Imposes 15% Tariffs on All Foreign Goods, Sparking Uncertainty in U.S. Wine Industry

The U.S. wine industry is facing a period of deep uncertainty as the future of tariffs on imported products remains unresolved. Last week, the Supreme Court struck down most of former President Donald Trump’s tariffs, but almost immediately, Trump announced a new round of tariffs on all foreign goods, this time invoking Section 122 of the 1974 Trade Act. The move has left importers, distributors, and producers unsure about pricing and long-term planning.

Legal experts say the new tariffs, set at 15% on all foreign products, may not stand up in court either. Section 122 was originally designed to address “balance of payments” crises, a situation that does not currently exist in the U.S. Trump’s justification is based on trade imbalances rather than a true balance of payments emergency. Katherine Philippakis, chair of the Wine Industry group at Farella Braun + Martel, said there will likely be legal challenges to these tariffs. She noted that it could take months or longer for the courts to resolve the issue, leaving businesses in limbo.

The uncertainty is already affecting both importers and domestic producers. Many wineries rely on imported equipment such as barrels, corks, and fermentation tanks. With no clear end in sight for the tariffs or their legal status, wineries are delaying investments and equipment purchases. Philippakis explained that this hesitation comes at a difficult time for the industry, which is already struggling with declining sales and other economic pressures.

Section 122 allows for emergency tariffs of up to 15% for a maximum of 150 days unless Congress extends them. The current round began last weekend and is set to expire in late July unless further action is taken. However, even this deadline does not provide clarity because the administration could claim another crisis and restart the process. Legal challenges could also drag on through multiple levels of courts before reaching a final decision.

The broader business community is also affected by this uncertainty. Importers do not know what prices they will pay in coming months, making it difficult to plan shipments or negotiate contracts. Some had hoped that the Supreme Court’s earlier decision would lead to lower tariffs and increased imports, but now many are adopting a wait-and-see approach.

Trump has other tariff options as well. In his first term, he used Section 301 of the Trade Act to impose targeted tariffs on countries accused of unfair trade practices. This process requires investigations and public comment periods but is more focused than Section 122’s blanket approach. For example, Section 301 could be used to retaliate against France’s digital services tax targeting American tech companies by imposing tariffs on French luxury goods or services.

Ben Aneff, president of the U.S. Wine Trade Alliance, argues that broad wine tariffs hurt American businesses more than European producers because imported wines pass through U.S.-based importers, distributors, retailers, and restaurants. According to USWTA data, every dollar spent on European wine generates $4.52 in revenue for U.S. businesses along the supply chain.

Aneff believes that U.S. Trade Representative Jamieson Greer understands these dynamics and may advise against targeting wine with new tariffs under Section 301. However, Trump has publicly threatened steep tariffs on French wines in recent conversations with French President Emmanuel Macron.

The ongoing tariff disputes are part of Trump’s broader economic strategy aimed at reindustrializing America by encouraging domestic manufacturing and reducing reliance on imports. While there have been some gains in industries like steel—U.S. Steel recently announced plans to hire 400 new workers—most sectors have not seen similar benefits due to higher costs for imported equipment and materials.

Within the wine industry itself, opinions are divided. Some California grape growers support tariffs as a way to counter what they see as unfair European subsidies for their own producers. But overall wine consumption in the U.S. continues to decline, and there is little evidence that tariffs have boosted domestic sales.

Philippakis suggests that direct government support for American producers—such as subsidies for agriculture or wildfire defense—would be more effective than imposing new layers of uncertainty through tariffs.

As legal battles continue and political debates intensify ahead of November’s elections, businesses across the wine industry are left waiting for clarity on how much they will pay for imports and how they can plan for the future. For now, doubt remains the only certainty in an industry caught between shifting policies and unpredictable legal outcomes.