DALLAS — President Donald Trump’s pledge to tax European wines and liquors is being met with optimism but also some concern in the Texas liquor and wine industry.


What You Need To Know

  • Texas wine and liquor manufacturers are hoping Trump's proposed retaliatory tariffs on European alcohol will encourage people to shop local

  • But business owners also worry that the tariffs could hurt them in other ways by increasing taxes on materials like imported oak barrels and glass for wine bottles

  • The Texas wine industry covers 9,000 acres of farmland in the state and contributes over $20 billion of economic value to the state, making it the fouth-largest wine producing state in the nation

On March 13, Trump posted to Truth Social that he planned to implement a 200% tariff on "all wines, champagnes, & alcohols coming out of France and other E.U. represented countries," as retaliation for a proposed 50% tariff the European Union’s threatened on American whiskey. The president ended the post saying "This will be great for the Wine and Champagne businesses in the U.S."

Encouraging purchase of domestic-made products over international imports is one of the main purposes behind tariffs, in theory.

For that, Texas industry leaders are hopeful.

Donald Short runs New Artisan Distillery in Dallas where his team produces botanical-based gin, vodka and bourbon on the brand name Roxor.

“For our bourbon we have the world’s first botanical bourbon — so we put in small amounts of 20 exotic botanicals,” Short said.

For any local business, getting a brand in front of new customers is always a challenge. Short said Roxor is available in liquor stores and at some bars and restaurants, but their best exposure comes from private events and people checking out the distillery for themselves.

So, the prospect of the tariffs opening the market up more for brands like his to get in front of new customers certainly has Short’s interest.

“Let’s hope that’s the case, and we’re optimists,” Short said.

Derek Simms is on the other side of the local industry. He sells liquor and wine at several bars and restaurants across the Dallas-Fort Worth area, including at the Monarch Stag outside of The Star in Frisco.

“These are some American brands that are really good,” said Simms, as he pointed out the large number of domestic offerings on the Stag’s huge wall of high-end liquors.

Simms said he’s already spoken to several of his vendors about prospective price increases as the tariff situation continues to shake out. Luckily, he said some of the Stag’s highest-end imports drain slowly among customers and won’t likely need to be replenished soon, but he fully anticipates having to pay more and charge more over time if the tariffs are put in place, as Trump has said.

However, Simms feels that the tariffs could open opportunities for American brands and even local Texas brands to get more shine and consideration from customers. Even in the case of the luxury liquors he specializes in, he says price is still a factor for many.

“They’re going to think twice when they go purchase a $400 whiskey. Say it (tax) goes up by 200%, and they’re going to go, ‘Let’s just go have a bourbon from Kentucky,’” said Simms.

But Simms said it’s all still speculation as we wait to see how — or if — those tariffs are implemented, as Trump has already delayed several other proposed tariffs.

At this point, several of the president’s proposed tariffs are expected to be enacted in the first week of April, but no hard timeline seems present on the European liquor and wine tariffs yet.

However, it’s other tariffs and the potential for more to come that have many in the Texas industry concerned that they may not have the positive effect that’s been promised.

Chris Hornbaker runs Eden Hill Winery with a location in Dallas and their main vineyard in Celina. It's one of a growing number of vineyards making Texas home.

According to the Texas Wine and Grape Growers Association, the industry covers 9,000 acres of farmland in the state and contributes over $20 billion of economic value to Texas, making it the fouth-largest wine producing state in the nation.

“People have discovered there’s great Texas wine being made in their backyard,” said Hornbaker.

While he too expressed optimism and excitement over the prospect of reaching new audiences and being more competitive in the larger wine market, Hornbaker said the tariff discussions are also creating all new cost concerns for Texas growers.

Afterall, this isn’t just about the wine or liquor in the bottle — there’s a lot more that goes into the industry.

“Many of our wineries are getting French oak barrels. Those are coopered or constructed in France,” said Hornbaker. “Certain vineyard supplies — many of those actually come from Canada.”

Additionally, Hornbaker points out that the glass most wine makers in the state use comes from Mexico — another country that’s been in the president’s tariff crosshairs.

Short said his architecture-themed Roxor bottles also come from Mexico, and that’s just one place the international market touches his production. He has aging barrels from overseas, parts for complex distilling and production machines that only come from the other side of the world and not to mention all the unique botanicals that make his brand stand out.

“Italian juniper, coriander from India,” Short said as he went through their large library of international ingredients.

So far, the president has only vowed to tariff certain imports from certain countries, so there’s no guarantee the manufacturers will see their costs go up on everything. But Short points out that it wasn’t until a few weeks ago that we knew the tariffs were coming on European liquors.

Like local manufacturers in many industries right now, he just doesn’t know what lies ahead.

So, despite a tariff that could help them, Texas wine and liquor producers remain stuck with the same unknown that so many in the state face right now: what effects other tariffs will have. For now, Short, Hornbaker and many other producers just hope that prospective exposure really does pay off.