NYC Restaurateurs Warn of Devastating Impact as Trump Threatens 200% Tariffs on European Wines and Spirits

Edited by: TJVNews.com

A looming transatlantic trade battle over alcoholic beverages is casting a long shadow over New York City’s restaurant industry, with some owners fearing that proposed 200% U.S. tariffs on European wines and spirits could be the final blow to an already battered sector. According to The New York Post’s ‘Side Dish’ the potential levies, floated by President Trump in response to new European Union tax threats, have sparked panic among restaurateurs, chefs, and importers who rely heavily on access to European alcohol.

The fear is not hypothetical. The EU is poised to impose a 50% tax on American whisky exports starting in early April, a move that Trump has vowed to counter with steep retaliatory duties on European wines, liqueurs, and other luxury food imports, according to the report in The New York Post. Though many in the industry hope the final tariffs will be lower — in the 20% to 25% range — the threat of a 200% duty is already sending shockwaves across restaurant wine cellars and import docks.

Few are feeling the pressure more intensely than independent and recently opened restaurants in New York’s hyper-competitive dining scene. Among the most vulnerable is Boni & Mott, a family-run Mediterranean restaurant in Nolita that opened its doors with a wine-driven business model while it awaits a full liquor license.

“Restaurants rely on selling booze. If the tariffs go up, it will put us out of business,” said owner Mehdi Mokrani, speaking to The New York Post.

He estimates that wine sales account for about half of Boni & Mott’s revenue, and the list is heavily curated with small-batch organic and biodynamic wines from France and Italy — the very countries most affected by Trump’s proposed tariffs.

Mokrani is not alone. The broader sentiment among restaurateurs, importers, and sommeliers is that European wines are not just a luxury — they are essential to their operating models, particularly for establishments built around wine programs or Mediterranean cuisine, The New York Post report said.

Even some of New York’s most established culinary figures are uneasy. Chef Eric Ripert, the legendary culinary force behind three-Michelin-starred Le Bernardin, and co-owner of Aldo Sohm Wine Bar, confirmed to The New York Post that while the industry is bracing for some kind of tariff, a 200% hit would be catastrophic.

“I think there will be a tariff, but not 200%. That seems very exaggerated,” Ripert remarked to The New York Post. “We had a 25% tariff last time Trump was in power on wines from France, Spain, the UK and Germany — that was bad, but manageable. A 200% tariff is a completely different story.”

Ripert also noted that his wine list is globally diversified, giving him some flexibility to pivot toward wines from New Zealand, Chile, Argentina, and South Africa. But for restaurants that rely heavily on European producers, there may be no viable substitute, especially for French Champagne, Italian Barolo, or aged Spanish Rioja.

For restaurateurs like Kylie Monagan, who co-owns the upscale Amali on Manhattan’s East 60th Street and the Hamptons-based Calissa, the tariffs would be devastating.

“A 200% tariff would be a death blow to an industry already crippled by the pandemic, soaring costs, and changes in consumer spending,” Monagan told The New York Post.

The potential ripple effects go beyond restaurants. Monagan’s husband, Iacopo di Teodoro, runs Classica Wine Merchant, a boutique importer focused on European wines. For businesses like his, the tariffs threaten total decimation of their business model.

“It’s not just the fact that there could be tariffs — it’s the uncertainty of it,” Monagan added, highlighting the broader climate of anxiety gripping the sector.

While Trump’s threat may be part of a negotiating tactic to pressure the EU, as some analysts suggest, the lack of clarity is already disrupting supply chains and chilling investment. Importers are reluctant to place large orders ahead of the potential tariff announcement, while restaurant operators are considering menu changes and reevaluating wine programs mid-season.

As Ripert explained to The New York Post, even a 25% tariff like the one imposed in 2019 caused significant challenges — both in terms of price increases for diners and squeezed margins for restaurants.

What’s often missed in political debates about tariffs is the role that European wine plays in the identity and financial viability of many New York City restaurants. For Mediterranean, French, and Italian restaurants in particular, these wines are not easily replaced, and many patrons expect them as part of the dining experience.

More broadly, these wines represent centuries of tradition, craftsmanship, and terroir that cannot be replicated elsewhere. For importers, sommeliers, and restaurateurs, the idea of replacing a decades-old Châteauneuf-du-Pape or a Brunello di Montalcino with a new-world substitute may be unthinkable — and economically impossible.

“When you are talking about goods shipped from overseas, products sent to the US before the announcement will incur a tariff you aren’t expecting — so a small shipment could have a $600,000 unexpected additional charge that has to be paid upfront. It’s a cash flow nightmare,” said Kylie Monagan, co-owner of Amali in Manhattan and Calissa in the Hamptons, speaking to The New York Post.

Monagan, whose husband is a wine importer, warned that the looming tariffs could force many restaurants to rework or scrap their wine lists entirely, jeopardizing the essence of establishments built around Mediterranean and European cuisine.

The tariff threat comes at a uniquely precarious moment for alcohol sellers in New York. As The New York Post report highlighted, alcohol sales are already under pressure from multiple directions:

Inflation has driven up the price of wine and spirits, squeezing margins for restaurants and prompting diners to cut back.

The “sober curious” movement, encouraging people to limit or eliminate alcohol consumption, has steadily gained traction.

And now, the legalization of recreational cannabis in New York State is further shifting consumer habits, especially among younger patrons.

Monagan explained that restaurants are already struggling to maintain profitability with wine prices “already crazy” by the glass and bottle.

“Restaurants are already operating under such a thin profit margin, and it will continue to get more expensive,” she told The New York Post.

According to Andrew Rigie, executive director of the New York City Hospitality Alliance, the ripple effects of the tariffs will inevitably reach diners.

“Tariffs on alcohol will drive up costs for restaurants and bars that serve imported wine and spirits, forcing them to raise prices for customers, absorb the financial hit, or remove many wines and spirits from their menus — all bad options that hurt small businesses and consumers,” Rigie told The New York Post.

For restaurants, especially those specializing in French, Italian, or Spanish cuisine, imported wines are more than just products—they are core to the dining experience. Removing them could not only alienate regulars but compromise the restaurant’s identity.

Meanwhile, passing costs along to customers risks price fatigue, especially at a time when discretionary spending is already under pressure due to rising rents, grocery bills, and broader economic uncertainty.

Beyond restaurants, wine importers and distributors are on the front lines of the tariff storm, and many fear they could be wiped out altogether if the policy goes into effect without warning.

Because of the nature of international shipping, a shipment of European wine or spirits that leaves port before a tariff is announced but arrives after it takes effect is still subject to the new duty, as was noted in The New York Post report.  That means an importer could suddenly be on the hook for hundreds of thousands of dollars in unplanned costs, due immediately to clear customs.

This sudden demand for capital is what Monagan describes as a “cash flow nightmare”—especially for boutique importers who rely on tight margins and often carry large inventories to maintain a diverse portfolio.

The stakes extend beyond economics. For many small restaurants in New York, wine isn’t just a menu item—it’s an expression of heritage, identity, and storytelling. These businesses often pride themselves on showcasing lesser-known varietals from small, family-run wineries in Europe.

Losing access to those wines—or being forced to replace them with cheaper, less authentic alternatives—means compromising a brand’s very soul.

Yet as The New York Post reported, many in the industry feel trapped. Whether they choose to raise prices, shrink menus, or absorb the losses, each option cuts into either profitability or customer satisfaction—or both.

While some believe the 200% tariff threat is a negotiating tactic that Trump may ultimately scale back, the lack of clarity is already causing widespread anxiety and business hesitation.

And even a more modest tariff—such as the 25% duties imposed in 2019 under Trump and later lifted by President Biden—could have serious consequences, especially given today’s economic headwinds.

If enacted, the tariffs would be felt not just in five-star dining rooms but across the entire hospitality sector—from neighborhood wine bars to small importers and family-owned bistros. And at the end of the day, consumers would likely feel the pinch most acutely, in the form of higher prices, reduced choices, and diminished experiences.

As one restaurateur told The New York Post, “It’s not just about money. It’s about losing a part of what makes our city’s restaurants so special.”

In a city defined by its global culinary diversity, the impact of these tariffs could be felt far beyond the balance sheets. They threaten to erase traditions, squeeze innovation, and disrupt one of the most vibrant aspects of New York culture: the joy of sharing a great meal, and a thoughtfully chosen glass of wine.