Tariffs on spirits and wine could impact central Illinois consumers and businesses

SPRINGFIELD, Ill (WICS) — Customers are already worried that wine prices will increase in the next few weeks.

That's because the Trump administration has threatened a 200% tariff on European wines...

And some tariffs are already in effect over Canadian, Mexican, and Chinese imports.

NewsChannel 20 spoke to local wine experts on how tariffs could hurt more than just your wallet...but your taste buds, too.

Many wine consumers said that every detail matters. When it comes to international wines, they said they're just not made the same.

President and CEO Sam Toia with the Illinois Restaurant Association said some international products just can't be replaced by U.S. goods.

"So many wine and spirits categories, such as tequila and bourbon, are distinctive products, that can only be produced in certain geographical regions around the world,” Toia said.

The Corkscrew off of Wabash Avenue carries an array of international wines...from France to South Africa.

Co-owner David Anderson said for wine connoisseurs, little details matter.

"There's a difference in profile, flavor profile. It's important to them. And that's why a lot of, say a French burgundy, a lot of people will pay more for that versus a U.S Pinot Noir,” Anderson said.

Anderson said tariffs might not just lead to higher prices...but a decrease in supply.

"My opinion would be that the importers and then distributers that get their wines from the importers will just not bring it in. Because it's just too cost-prohibitive,” Anderson said

Making it harder to find wines from places like France, Italy, and the Netherlands.

The 200% tariff could more than double the price of EU imported wine.

Anderson said it might not be worth it to carry those wines.

"We don't wanna buy wine that's just gonna sit here and not sell because it's just too expensive. A 15-dollar bottle wine turns into 45, the value for the people is just not gonna be good,” Anderson said.

Anderson said he's already seen some customers moving to proactively buy wines that could rise in price.

Anderson said for now, all they can do is wait. He added that if tariffs do go into effect, he doesn't anticipate them lasting long.

The Trump administration is enforcing a 25% tariff on imports from Canada, Mexico, and a 10% increase on imports from China.

The president of the Illinois Restaurant Association told NewsChannel 20 we'll soon see prices begin to rise on products like tequila.

Saying for example...a 50-dollar bottle of alcohol could increase to 62 dollars...but there's still uncertainty about how much prices will change.

Restaurants said prices have already been rising due to inflation...

And tariffs can add another weight on that overseas scale.

"There's only two things you can do in the restaurant industry. You can control your labor costs, and you can control your product cost. When products go up, you raise the costs,” Toia said.

"Especially in central Illinois, we're gonna see a lot of the independent restaurants are gonna get hit the hardest, because they don't have the buying power as the chain restaurants,” Toia said.

Toia said not all products are available year-round in the U.S. He said it can be harder for small restaurants to acquire those products at an affordable rate.

Later legislation said products that meet The United States Mexico Canada Agreement could be exempt. But Toia said agriculture products are not included in that agreement.

Toia said that although tariffs serve a purpose, he said restaurants are already struggling to keep up with rising prices.