Retailer worries wine, cheese tariffs will hurt holiday sales

NEW YORK — The tariffs the Trump administration is about to impose on wine, liquor and cheese from Europe couldn’t come at a worse time for small retailers.

“It’s kind of scary in the sense that we’re getting to the holiday season,” says Joseph Kakos, owner of Kakos Fine Wine & Spirits in Birmingham, Michigan. “October, November and December are the time when you really make your money for the year.”

No one expects consumers to completely abandon Bordeaux and other wines from France, Scotch whisky or cheeses like Parmesan or Roquefort when the 25% tariffs take effect Friday. Still, Kakos says, shoppers may turn price conscious just as shelves are well-stocked for the holidays.

“People come in with the perceived idea of, is this more expensive? Has this gone up?” he says.

Wine retailers, distributors and importers already expect some customers to seek reds and whites from countries whose products aren’t being taxed. And any signs that customers are balking at higher prices will force retailers to absorb their increased costs.

The tariffs are mostly on food and alcoholic beverage products such as cheese from Britain, Switzerland and Italy; olive oil from Spain; Scotch whisky and French, Spanish and German wines. They’re also being imposed on equipment from kitchen knives to large aircraft. The administration is imposing them in retaliation for the European Union’s subsidies of aircraft maker Airbus, the competitor to the U.S. producer Boeing.