With President Donald Trump eyeing major tariffs on alcohol, a significant trade association warns that the decision could cause prices to soar.The Wine and Spirits Wholesalers of America cautioned that tariffs could threaten to upend a market that relies on the availability of single-origin, geographically designated products that have strong consumer demand and are irreplaceable.The group states that 30% of wine and spirits by volume are imported. Imported wine accounts for 35% of all wine and spirits revenue in the U.S., according to the association.Given the challenges the wine and spirits industry has already facedespecially with 2024 being one of the most difficult years in decades, according to SipSource databusinesses across all three tiers, from suppliers to wholesalers to retailers, are in no position to absorb such drastic cost increases, Wine and Spirits Wholesalers of America President Francis Creighton said. While individual companies will make their own choices, the vast majority will struggle to manage these added expenses. At the end of the day, these tariffs, if implemented, wont just hurt our industry; they will directly raise prices for American consumers.RELATED STORY | Trump signs a bill funding the government for 6 months, avoiding a shutdownIn a post on Truth Social on Thursday, President Trump stated he would enact a 200% tariff on all alcoholic products coming from the European Union, claiming the tariffs would be "great for the wine and champagne business in the U.S." After the U.S. imposed a tariff on global aluminum and steel imports, the European Union retaliated by enacting a 50% tariff on whiskey from the U.S. This tariff is set to take effect on March 31.President Trump indicated that if Europe does not lift its tariff on whiskey, he would impose the 200% tariff on all "wines, champagnes, and alcoholic products coming out of France and other E.U.-represented countries."A tariff on imported wine and spirits will directly impact American workers, Creighton said. Rising costs will cause some consumers to stay at home, hurting the bartenders, servers, and other bar and restaurant workers who depend on customer traffic for tips and shift hours.The Wine and Spirits Wholesalers of America is encouraging the Trump administration to reconsider imposing the tariffs.Tariffs are an import tax charged to companies when products cross international borders. Economists believe companies will tend to pass the cost of tariffs on to consumers.RELATED STORY | USPS to slash 10,000 jobs as outgoing postmaster general partners with DOGE ...read more read less