Sheriff of the Tariff

What is a tariff? Tariffs are taxes imposed by a government on imported or exported goods. When a country places a tariff on a product, it raises the cost of that product when it crosses a border, typically to: Protect domestic industries from foreign competition, generate government revenue, and/or retaliate against another country's trade policy.

How does this effect the wine industry? At first, negotiations as to what percentage we were going to endure was keeping us all on the edge of our seats. The effects are palpable, domectic and foreign. Ships were held back in Europe at the first announcement of wine tariffs, making it difficult to estimate time of arrival, if ever. Our dear importers and distributors are just now seeing the grunt of it, at an average of a 15% increase across the board. Our importers and distributors play a key role on how we get our wine from afar. They are taking it in stride, and like us retailers, are thinking of our consumers first and foremost. Negotiating better prices, just enough so all of us can strive to be sustainable so there is enough money and labor to maintain the vineyards and wineries which are expensive to run. Collaboratively, everyone bares the burden so not just one area takes the hit. Raising prices across the board by a dollar or two so it is not as great of a shock to the market makes sense for some. And with those slight increases, taking a loss for the greater good to keep the wine industry alive is now common practice. A whole economy dedicated to making sure wine gets into our glasses. A question frequently asked is; 'Doesn't this mean we will get domestic wine at a better price?' In theory, you'd think so. It's understandable why one might think that. However, not all our bottles, corks, caps, barrels, equipment, and labels are made domestically. These items are also taxed when purchased, the tax varies depending on the country. In younger wine regions like Washington State, Southern Oregon, and even parts of California, farmers are not only faced with water shortages, but are still paying off their fascilities, paying high property taxes, paying off equipment, while still maintaining their work force. See what I mean? And what if there is a bad crop? Smoke years are a major concern of growers. So, you may still see better prices on imports vs. domestic wines even still. But, you know what? Wine prevails!!! Wine has survived tariffs before. It has also survived civil and world wars, wild fires, prohibitions, plagues, depressions, recessions, pandemics, and is currently surviving global warming and the decline of consumption. Spain is a perfect example of how wine prevails. Wine survived 781 years of Moorish Rule. With adaptation comes resilience. We are going to get through this. I have dedicated most of my life to wine and I along with many colleagues vow to make sure wine gets into your hands at affordable prices. And wine clubs are a great way to save! So join one of our three wine clubs and become a part of our crazy little family. If anyone has seen the 'Mood' commercials on TV, it has inspired a slogan here at Porron Cellars.....Stop smoking weed! Drink more wine! See you at the wine bar, my friends!