REHOBOTH BEACH, Del. — Local businesses that rely on imported wine, beer and liquors are bracing for impact as President Trump announced Wednesday a 20 percent tariff on goods from the European Union and an additional 34 percent tariff on Chinese imports.
President Donald Trump also said the United States will put at least a 10 percent tariff on all goods coming into the country.
These new alcohol tariffs could lead to what Dale Lomas, co-owner of Atlantic Liquors in Rehoboth Beach, calls “sticker shock.”
“This is Rehoboth Beach — the nation’s summer capital,” said Lomas. “So if the capital is in turmoil, so is the nation’s summer capital.”
Lomas and other local retailers are bracing for possible tariff hikes on foreign wine, tequila, beer, and even the materials used to package them, like aluminum cans.
The U.S. has an existing 25 percent tariff on imported autos, steel and aluminum, according to the Associated Press.
“I know that he had threatened French wine; an enormous tariff on that,” said Lomas. “We sell a fair amount of French products — champagne, wine — so that would go up substantially.”
For Christopher Desch and Eric Furr, owner and bartender of 302 The Local on Coastal Highway, roughly 70% of their alcohol is imported. They say a tariff increase would force them to make tough choices.
“Whether it’s switching out one varietal for another to keep the costs low, we’ll certainly do that,” said Desch. “And if we have to take items off the menu as a result of tariffs, we’ll do that as well.”
Whether it’s a menu shakeup or a price hike, one thing’s certain: your next cocktail might come with a little more sticker shock — and leave you shaken, not stirred.