KANSAS CITY, Mo. — The Trump administration has threatened tariffs on European liquors, meaning the price of your favorite wine may be going up.
President Donald Trump threatened to impose a 200% tariff on alcohol imported from EU countries. This follows a 50% tariff the EU imposed on U.S. whiskey.
As these tariffs loom, Kansas City's own J. Rieger & Co. could face considerable challenges.
President Andy Rieger explained the distillery imports several essential materials, including botanicals, glass bottles and even sherry wine from Spain. With the proposed tariffs, those input costs could rise substantially, affecting both production and the price of making whiskey.
“We're doing all of these things directly into our facility, so our biggest thing that we always look at is those general tariff costs,” Rieger said. "When thinking of tariffs and everything going on, we as a manufacturer, there's a lot of times where you have products that you can't really get in America.”
Though J. Rieger focuses largely on the U.S. market, the distillery is not immune to the broader impacts of this trade war. Larger distilleries with substantial international markets could be more vulnerable to export tariffs. For smaller operations like J. Rieger, it's the cost of imported materials that could drive up prices, making it harder to compete.
Despite this, Rieger said Kansas City’s economy may offer some cushion compared to cities that rely on tourism or imports.
“We're an agriculture-based economy, but the manufacturing side is a serious threat. And so, what is the input cost of manufacturers, whether it be alcohol or other things?” Rieger said.
Rieger also pointed to the impacts of tariffs on steel and aluminum, which affect industries across the board.
“It's not really the alcohol tariffs for things coming in that's going to affect us, it's the tariffs on steel and aluminum, those things that are the inputs to be able to make machinery, to be able to build manufacturing plants,” he said. “All those little bits and pieces, if you don't take those into account, it becomes a really big deal.”
The Distilled Spirits Council of the United States is urging the administration to resolve this trade conflict and return to zero-for-zero tariffs. But as the back and forth continues, distilleries like J. Rieger are waiting before they make any changes to price or material choices.
—
KSHB 41 reporter Olivia Acree covers portions of Johnson County, Kansas. Share your story idea with Olivia.
