President Trump's threat to impose 200% tariffs on French wine and champagne, on top of the recent threat of added 10% tariffs on goods from France, Germany and other countries, imperil an American industry already experiencing widespread layoffs and contraction, the U.S. Wine Trade Alliance (USWTA) said.

America’s wine import and distribution ecosystem is already shrinking, USWTA said . Since early 2025, major U.S. distributors and importers have collectively laid off many thousands of American workers, citing declining volumes, higher carrying costs, existing tariffs, and prolonged market uncertainty. These layoffs have affected sales teams, logistics and transportation roles, portfolio managers, warehouse staff, and administrative employees across multiple states.

During the 2019–2021 tariff period, economic analysis submitted to the Office of the U.S. Trade Representative (USTR) found that every $1.00 of damage imposed on European wine exporters resulted in approximately $4.52 of collateral damage within the United States, borne almost entirely by American companies and workers.

Even as a threat, a 200% tariff would freeze commerce, accelerate layoffs and punish Americans that have no role in geopoliticsUSWTA said.

“Tariffs don’t hit foreign producers—they hit businesses like mine,” said Harry Root, owner of Grassroots Distribution in South Carolina. “When costs suddenly spike or inventory becomes uncertain, small distributors are forced to pull back immediately. That means fewer purchases, fewer sales routes, and staff cuts. A 200% tariff would be catastrophic for small, independent distributors and the communities we serve.”