Bay Area Wine Producers Fear Effect Of Increased China Tariffs
(KPIX 5) -- With the U.S. and China embroiled in a worsening trade dispute, increased tariffs and the threat of further escalation has raised concerns in Bay Area wine country.
On Friday, the U.S. increased tariffs from 10 percent to 25 percent on $200 billion worth of Chinese goods, and President Donald Trump said Friday that the "process is in place" to levy an expanded round of tariffs on effectively the remainder of Chinese imports, totaling $325 billion.
"Well, we get it both ways because we export wine to China from several of our wineries including Kunde Estate Winery," said Pat Roney of Vintage Wine Estates. "We see 70 percent increases in tariffs and 60 to 70 percent losses in business."
Roney says existing tariffs have already hurt his once-robust sales in China. "Now, with the threat of yet a third tariff added to it, it may even put us out of business in China," he said.
Roney says both he and consumer will be hit by the trade war.
"We buy wine bottles from China," he said. "We have to import that, so the cost of tariff increase forces us to raise the price of our wines. Everybody pays somewhere. I mean, it always gets passed on to the consumer one way or the other."
For shoppers looking for other products, the urgency is to buy now before the effects of the increased tariffs take place.
"I don't have that kind of money to throw away, so I figure I'll do all my shopping now," said Andre Taylor, shopping at Granite Expo in Oakland.
At this store, a bill of about $260 one year ago will now run about $430. The store is now covered with signs, including pictures of President Donald Trump, explaining to customers how the tariffs will continue to drive up prices.
"Before I even seen the sign I've just been following that whole saga," said Taylor. "And that's bigger than me, so I've got to do what I need to do for me, which means get it in before the price increases."
