Raising tariffs on wine a catastrophe

The COVID-19 crisis has been devastating for the restaurant industry, but businesses throughout New York proved resilient, shifting models to offer delivery options, sell cocktails to go, and develop entirely new menus. At Pōst, a wine bar on Lark Street, we pivoted from a fine dining restaurant to selling gourmet groceries and natural, sustainably produced wines in a retail setting.

Now, despite our industry’s efforts to quickly adapt and innovate, and Gov. Andrew Cuomo’s relaxation of regulatory hurdles, a Trump administration proposal to once again raise tariffs on imported wines would be catastrophic for business. These tariffs — a retaliatory measure aimed to punish the EU as a result of a long dispute over airline subsidies — directly and unfairly affect American importers, distributors and retailers.

Government policies should support small, homegrown businesses, not create new tax burdens and obstacles to success, especially during these difficult times.

The supply chain for businesses like mine requires discovery and distribution by people who know and care about the winemakers. Sometimes it’s not a chain at all, and I buy from the person who single-handedly discovered a new winemaker and began importing those bottles. The tiniest companies are often the source of the most incredibly unique wines. New tariffs would threaten the livelihoods of everyone involved.

In 2019, a 25 percent tariff was imposed on wines from several European countries. Large corporations could absorb that, but smaller companies felt the squeeze immediately. Now, the administration plans to increase tariffs to 100 percent. It would be disastrous for the entire industry, and the smallest businesses will suffer most. An estimated 80,000 jobs would be lost nationally among wine importers, storage companies, delivery drivers, office workers and restaurant employees.

Not to mention the increased cost to consumers.

If the tariffs go into effect, it will be a disaster for businesses already struggling in the Capital Region’s vibrant and burgeoning fine wine scene.