Threat of 200% tariff leading some to stockpile foreign wine, alcohol

RALEIGH, N.C. (WTVD) -- Chris Powers and his business partners have a highly curated selection at the wine shop inside State of Beer. Many wines are from tiny vineyards. There might only be two family members tending the land and producing bottles. Most of the wine comes from the European Union, where President Donald Trump is now threatening to levy a triple-digit retaliatory tariff in response to proposed European tariff hikes

"It is a big blow to think about," said Powers.

The move came a day after the EU announced plans to slap tariffs on $28 billion worth of U.S. goods, including a 50% tariff on whiskey.

He's beginning to stock up on foreign wines before prices possibly soar.

"It's terrifying," said Powers. "We're thinking about getting new wines for the summertime, which is one of our busiest times of the year."

Jeffrey Dorfman, the Hugh C. Kiger Distinguished Professor of Agricultural and Resource Economics at NC State University, said if the tariff were to take effect, a $20 bottle could spike to $50 and a glass in restaurants might be the same price as your main entrée.

"People are pretty much going to stop buying it," said Dorfman.

ABC11 asked Dorfman about the 200% tariff threat.

"I don't think we've ever done anything that high. It would be a bit of a surprise. It seemed more like a grandstanding tactic," said Dorfman.

Powers hopes this is a tipping point.

He said, "I think American consumers are used to having alcohol as part of their daily life and I think this is going to be a problem."