Massachusetts wine company says 200% tariff would "cripple" business
Andrew Bishop, the owner of Oz Wine Company in Methuen, distributes fine wine and spirits to hundreds of restaurants and liquor stores throughout the state. At least 75% of the import and wholesale company's stock comes from Europe where he works with many organic farmers and producers.
Threats of tariffs
Threats now of 200% retaliatory tariffs on those products would devastate his business. "It would cripple it significantly," Bishop tells WBZ-TV. "Probably would have to really downsize everything in my business."
It's the latest front in a global trade war that's having a dizzying impact. The inventory Bishop has now, without an added tax, could last four or five months. What to tell his customers about future orders is uncertain.
"We're making the placement right now for these businesses, but there is potential that if the tariffs are implemented, we would have to change our prices, we'd have to start all over again," Bishop said.
Liquor store price hikes
Those price hikes would trickle down to a liquor store like Dion's in Waltham, who would have to pass them on to customers. European wines make up about 30% of his business.
"We like to see indicators and we like to be prepared for what is going to happen," said owner Joseph Dion. "Right now, it's just unknown."
If a $55 to $60 dollar bottle of champagne, for example, doubles or triples in price, the fear is it could disappear from the shelves if the cost is too prohibitive.
"We have a good inventory now, but if we were really light in inventory it would be tough," Dion said. "But it's hard to know because if cases of wine double in price, we just won't buy them."
Andrew Bishop says he'd have no choice but to pass on the increase and anticipates there will be one. "I suspect that 200% will not be our reality, but I do expect some sort of tariff to be coming down the line," Bishop said.
For now, he says he can only brace for the unknown.
