U.S. Restaurants Drop European Wines as Tariffs Drive Up Prices

Restaurants and bars across the United States are changing their wine menus as new tariffs on European wines, introduced under former President Donald Trump, drive up prices. The tariffs, which began with a 15% rate on European wines in August 2025 and were followed by a new package of levies in February 2026, have made imported champagnes and crémants significantly more expensive for American buyers. As a result, many establishments are replacing well-known European brands with more affordable domestic alternatives.

The impact of these tariffs is being felt throughout the hospitality industry. Kristen Goceljak, wine director for Kent Hospitality Group in New York, said that certain champagne and crémant brands that were once staples on her menus are now too costly to keep. She noted that a champagne she previously bought for $48 per bottle increased by about $5 at her wholesaler after the new tariffs took effect. A crémant from the same supplier rose by $3 per bottle. Goceljak reported that other suppliers have warned her of price hikes as high as 20% this year. She is now planning to switch out several long-standing European labels for less expensive options.

The tariffs have had an immediate effect on alcohol imports from Europe, which were valued at around €9 billion ($10.4 billion) in 2024 according to Eurostat. Initially, some producers tried to avoid passing costs onto consumers by shipping large quantities before the tariffs took effect or absorbing the extra expense themselves, especially during the busy holiday season from October to December. However, these strategies are becoming unsustainable as costs continue to rise.

Lance Emerson, Senior Vice President of Commercial Finance at Republic National Distributing Company, one of the largest U.S. wholesalers, said that the pressure to pass increased costs onto consumers is growing. He explained that wine has been hit harder than spirits because spirits producers have more flexibility to absorb tariff costs within their profit margins. Retail prices for some imported wines rose between 5% and 12% in 2025, and further increases are expected this year.

Retailers and restaurants are responding by adjusting their inventories and menus. Emerson said many are shifting toward lower-cost options and balancing imported selections with domestic wines. Zach Poelma, Senior Vice President of Commercial Intelligence at Southern Glazer’s Wine and Spirits, another major wholesaler, said he expects more venues to swap imported wines for American ones as prices continue to climb.

Sales data reflect these changes in consumer behavior. According to Poelma, imported wine sales volumes fell by about 8% between October and January, while domestic wine sales dropped only 3% during the same period. This trend continued into February.

Some U.S. wine brands are benefiting from the shift. Josh Cellars, a California label owned by Deutsch Family Wine & Spirits, saw its sales increase by 8.3% in the 13 weeks leading up to mid-March, even as overall wine sales declined by 3.6%. Dan Kleinman, chief marketing officer at Deutsch Family Wine & Spirits, attributed part of this growth to higher prices on imported competitors due to tariffs. He noted that maintaining a price point of $10-$12 per glass is crucial for staying on restaurant menus because many consumers are unwilling to pay more.

Restaurants like Wife and the Somm in Los Angeles have also adjusted their offerings in response to rising costs. Owners Chris and Christy Lucchese said they replaced some Old World European wines on their “by the glass” menu with domestic brands after seeing significant price increases for both European wines and artisanal cheeses and meats. They have shifted their entire cheese and charcuterie program to domestic products but sometimes still pay more for U.S.-made items than they previously did for imports.

Wholesalers expect further price increases as the year progresses and say that restaurants and retailers will likely continue adjusting their selections to manage costs. The ongoing changes highlight how trade policy can quickly reshape what Americans find on their tables and shelves when they dine out or shop for wine.