ORLANDO, Fla. — Tim Varan says the price of his wine from France will soon go up — but he's not the only retailer.
- Recent tariffs to increase prices on imports from the EU
- Wine, cheese are some products to get more expensive
“If it is a 25% increase in the cost of the wines, then it’s likely that’s going to have some impact on sales," said Varan, the owner of Tim's Wine Market in Orlando.
Recent international trade wars have had a ripple effect on items American consumers purchase daily. Tariffs on washing machines, for instance, have forced consumers to pay more for the appliances, but lobster tariffs have helped consumers pay less at the register.
Tariffs on French wines and Italian cheeses, though, have been a long time coming.
Anticipation for a tariff on these products have been for more than a decade and will come with a 25% hike.
The World Trade Organization has recently authorized the U.S. to tax $7.5 billion worth of European Union imports after a debate about forbidden aircraft subsidies awarded to Airbus, a European aerospace company.
"The EU has been protesting it in court for about 15 years now," Varan said. "WTO in September came out and said, 'This is over; this is done. The U.S. is in their right to impose tariffs to offset what they are giving to Airbus."
Certain cheeses also will see a price increase — particularly those popular with American consumers such as Parmesan from Italy.
With the tariffs likely increasing prices on popular cheeses and salted meats, Corrente hopes that will widen the market for domestic cheeses.
"It will be a great opportunity to shine the light on what we are producing and doing here domestically," Corrente said. "We do have some really great cheese makers and really great products coming out of the U.S."
Both businesses will be impacted by the tariffs, but they say differently. For instance, a pound of Italian Parmesan can go up $7.50, and French wine may go up anywhere from $5 to more than $30 per bottle.
"I think people will have to either scale back or change their menu," Corrente said. "I might have to (raise prices) depending on how much everything begins to be affected."
The bottom line is that businesses, and therefore consumers, will have to pay more.
Other items impacted by this tax include certain types of Scotch, wool and cashmere sweaters, olive oil, green olives, European liqueurs, and waffles.
Wine prices are expected to jump after the holiday season because most of the fourth-quarter wine that was imported is already here. Cheese prices could go up before the end of the year.