Trade Wars and Tariffs: A Threat to the European Wine Industry and Chicago Restaurants

Introduction to the Issue

CHICAGO (WGN) — First Canada, now the European Union: The escalating trade wars and reciprocal tariffs could pave the way for a devastating economic toll on Chicago businesses.

Volo Restaurant Wine Bar and their vast wine list has been a Roscoe Village staple for the last 20 years. But owner Jon Young may have to slim down the selection of wines following a threat from President Donald Trump, who, on social media Thursday, proposed a 200% tariff on European wine, champagne, and spirits if the EU moves forward with a 50% hike on American Whiskey.

The Potential Impact on Businesses

"Just hearing that, it turns my stomach," Young told WGN News. "When I hear news like this, I feel like we are kind of like pawns on a chess board."

Trump’s Proposed Tariff

Trump threatens Europe with 200 percent tariff on wine, Champagne
Young’s business features wines from Spain, France, Italy, Germany, and Slovenia.
"Lots of Europe repped here," he said.
The proposed 200% tariff on European wine was in response to steel and aluminium tariffs by the US, in what Young called another tit for tat move that could potentially impact people’s livelihoods.

Industry Response and Concerns

"I think it demonstrates a huge disconnect or even disregard for the average consumer and the average American," Young said.
The alcohol industry is thriving in the States, and Chris Swonger, the CEO of the Distilled Spirits Council, told Nexstar’s NewsNation that fair and reciprocal trade is vital.
"We are working closely with the Trump administration and the EU and Canada to try to untangle this industry," he said.
Still, Young feels President Trump’s proposed actions would harm the US wine industry more than benefit.

EU Retaliation

EU retaliates as Trump steel, aluminum tariffs take effect
"It’s going to drive down consumption of wine in the US," he said.
For wine drinkers, Young added that enthusiasts cannot replace a French Chablis with a California Chardonnay, and the hope now is that Trump’s threat remains as such – a threat.
"Everyday it seems shocking," Young said. "Today I woke up and guess what, this directly affects me. How long is it before it directly affects you?"

Conclusion

The proposed tariff on European wine, champagne, and spirits by President Trump poses a significant threat to the European wine industry and Chicago restaurants. The move is seen as a tit for tat response to the EU’s proposed hike on American Whiskey, and it could have far-reaching consequences for businesses and consumers alike. As the trade wars escalate, it remains to be seen how the situation will unfold and what the ultimate impact will be on the industry.

FAQs

• Q: What is the proposed tariff on European wine, champagne, and spirits?
  A: President Trump has proposed a 200% tariff on European wine, champagne, and spirits if the EU moves forward with a 50% hike on American Whiskey.
• Q: How will the proposed tariff affect Chicago restaurants?
  A: The proposed tariff could lead to a decrease in wine consumption in the US, ultimately harming the US wine industry and affecting businesses like Volo Restaurant Wine Bar.
• Q: What is the response from the alcohol industry?
  A: The Distilled Spirits Council is working closely with the Trump administration and the EU to try to resolve the issue and promote fair and reciprocal trade.
• Q: Can wine drinkers replace European wines with American alternatives?
  A: According to Jon Young, wine enthusiasts cannot replace a French Chablis with a California Chardonnay, highlighting the unique nature of different wines.