How European Wine Absorbed Trump’s Tariff Punch: Supply Lines

To understand why President Donald Trump’s year-old trade war hasn’t caused inflation to spike higher, consider an ordinary bottle of European wine.

The US slapped a 10% tariff on wines from the European Union in April last year before hiking it to 15% in August. Since then, prices have risen gradually, at different speeds for different origins, grapes and labels.

Vintners, importers, shop owners and restaurateurs spent the past year trying to outmaneuver Trump’s tariff threats and have done what they can to avoid passing the full cost on to consumers.

They stockpiled bottles before the levies took effect and ...