The California wine industry is looking for answers as tariff threats add to the woes already facing the industry. On March 13, the Trump administration threatened to impose a 200% tariff on all alcoholic beverages from the European Union. Then, on April 9, a 20% import tax on items from the European Union took effect, then was reversed and paused for 90 days.
We checked in with a trio of Bay Area several wine shop owners to see how they’re holding up with the uncertainty – and what domestic wines they recommend for customers looking for alternatives for their favorite European wines.
Harrison Fong, Vintage Wine Merchants, San Jose
For Harrison Fong, proprietor at Vintage Wine Merchants in San Jose, the uncertainty is scary. “It’s difficult to plan and run our businesses in this wild environment,” he says, noting that imports make up more than half of his business.
A 20% tariff on goods imported from the EU might hurt, but would be manageable, he says. It’s similar to what was imposed during the first Trump administration. “We didn’t like it but we got through it. And we’ll get through this again.”
But a 200% tariff? “I’ve got A LOT of prepaid inventory on the water on the way from France and Italy,” he said in an email. “If the proposed 200% tariff goes through and the wine arrives at the wrong time, it might be the end of us.”
Besides, he notes, the hospitality business is already struggling due to inflation and consumers’ post-pandemic habits of going out less.
His strategy right now is to pivot and focus on selling more American wines.
Recommendations: From the Santa Cruz Mountains, look for local Cabernets in the European style from Kathryn Kennedy Winery, Mount Eden Vineyards, Ridge Vineyards and Testarossa Winery, he says. If you like French Burgundy wines, scout out Oregon wineries like EIEIO & Company, Walter Scott Wines and OO Wines.
Details: Open 10 a.m.-9 p.m. Monday-Saturday and 12-6 p.m. at 377 Santana Row #1135, San Jose; vintagewinemerchants.com.
Jim Meyers, Wine Thieves, Lafayette
Jim Meyers, who has been running Wine Thieves, a more budget-minded wine shop, in Lafayette, for 26 years, seems less worried about the threatened import tax on European wines. Yes, sales will be impacted, but generally, wine consumers in California have plenty of high-quality alternatives to European ones, often at lower price points, he says.
The bigger challenge is tackling declining consumption, which he’s working to address through consumer education, one tasting at a time. Having a tasting room goes a long way toward allowing curious visitors to sample wines before they buy, he adds.
“Use independent retailers to find those hidden gems that will keep you from having to spend a lot of money,” he says. “There are so many good wines in the market right now — more so than ever before, all across the world. Keep an open mind.”
Recommendations: If you like Rhône-style wine, Meyers recommends Sonoma County’s Cochon Wines. If you like a Bordeaux-style straight Cabernet, go for Brady Vineyards’ Cabernet Sauvignon from Paso Robles, at just $17 a bottle. Prefer a Bordeaux blend? Try Novelty Hill’s wines from Washington state, he says.
Details: Open 10 a.m.-6 p.m. Monday, 10 a.m.-7 p.m. Tuesday-Saturday and 11 a.m.-6 p.m. Sunday at 3401 Mt. Diablo Blvd, Lafayette; winethieves.com.
John Graham-Taylor, The Bottleshop Wine Bar + Kitchen, Redwood City
Even beyond the tariff threats, wine shops face existential challenges, according to John Graham-Taylor, who’s currently in the process of closing his business, Bottleshop in Redwood City.
He started to shutter his shop the day before the 20% import tax on items from the European Union was announced (then paused). The five-year-old wine and bites shop had seen tough times. The shop opened in 2018 under different ownership and was struggling when Graham-Taylor took over in March 2020, just days after the COVID-19 lockdowns began.
At the time, federal small business loans helped him stay afloat until things started to bounce back. And at first, they really seemed to: 2023 was a fantastic year. Then 2024 came, and it was “a fiscal cliff,” he says.
His shop had a relatively high proportion of European wines, which he prefers to pair with food over California wines, which “tend to be more of a cocktail wine,” in that they’re built to stand alone without food pairings, he says.
“This has been a five-year romance, and the hardest, saddest and greatest thing I’ve done in my life,” he says, adding, “I’m down but not out — I’m not dead. I’m not bankrupt. I’m just closing.”
Recommendations: Graham-Taylor is in the process of selling his remaining inventory with a 30% discount.
Details: Open daily 12-7 p.m. at 2627 Broadway, Redwood City, for the next few weeks or until inventory is gone; thebottleshoprwc.com.