Amuni

How Tariffs Will Affect Food and Wine Prices in NYC | Eater NY

"Started in 2020 by Jonathan Lazar, who moved from the fashion industry into wine, the importer works with 35 winemakers in 18 of Italy’s 20 regions and distributes to 20 U.S. states; in New York his wine appears in shops Thirst Merchants and Wine Therapy and restaurants like The Four Horsemen. Jonathan Lazar: "I’m not 100 percent certain that this 20 percent tariff is final, and I believe there is room for negotiation. I don’t know if the EU will retaliate or concede — if there will be a trade war — but I think changes will come, possibly with the tariffs being structured differently — based on alcohol percentage, regions, or specific items and such. There’s a lot of panic right now, which isn’t helpful for anyone. I’m focusing on discussions with winemakers in different regions to understand how we’ll navigate this situation. Fortunately, I just received a container of new stock that isn’t affected by this change." On logistics he explains: "A 40-foot container typically fits 28 pallets of wine. Each pallet holds about 672 bottles, so that’s roughly 18,816 bottles in total." He emphasizes regulatory and pricing constraints: "As an importer based in New York, we have to adhere to state liquor authority rules and publicly post prices 30 days before they take effect. If we adjust prices today to account for a 20 percent tariff, but the tariffs change tomorrow, those prices become invalid, and we can’t adjust them again immediately. This uncertainty makes it difficult to plan. Pricing changes have to be carefully considered — without negotiation with the winemakers, a tariff increase could make importing certain wines unfeasible." On possible retaliation he warns: "If the EU retaliates, it could escalate the situation and potentially lead to even higher tariffs. That would affect generations of European winemakers who have been producing wine for centuries. The EU depends on U.S. consumers, and we rely on their products, so there needs to be a fair resolution. I’m hopeful for negotiations that create a balanced outcome. The initial threat of a 200 percent tariff was alarming, but even 20 percent creates challenges. The real issue is the uncertainty." He also outlines inflationary pressures with specifics: "Wine prices have consistently risen post-COVID. Many consumers and buyers may not fully realize how much production costs have increased in Europe. For example, an empty wine bottle used to cost €0.17 but has since doubled or tripled. Cardboard costs have risen 100 percent, and electricity in Europe has skyrocketed. A wholesale bottle that once cost $4 to $5 now often costs $6 to $7. Freight costs surged during COVID and have fortunately stabilized, but overall production expenses remain high. This has been passed on to U.S. consumers, making it harder to find great value wines in some regions. The U.S. three-tier system further adds to costs, as importers must handle licensing, bonded storage, insurance, logistics, and delivery fees." In an Instagram post he concluded: "Tariff what you want: I’m still bringing in real wine. Wine made by families who have been tending vines in Italy for centuries, long before governments started playing games with trade. Generations of winemakers who dont follow trends, who don’t chase markets, who make wines because it’s in their blood. The same vineyards that survived wars, invasions, and empires will survive this too. You can tax bottles, but you can’t kill tradition." - Melissa McCart