Small California producers say Trump’s EU levies are driving up costs and threatening family businesses

K

ory Burke, a small producer of high-quality wines in central California, never believed that tariffs on imports from France or Italy could help boost his business. But he knew for sure they would be a big hindrance as soon as Donald Trump announced late last month that he was slapping a 15% levy on all goods from the European Union.

“The first email I received was from my cork provider,” Burke recalled. “He said he’d take on 2% of the additional cost of importing corks from Europe, but I would have to absorb the other 13%. Then my barrel supplier got in touch, pushing me to put in my orders as fast as possible because every new French barrel coming across the Atlantic after the tariffs was going to come with a $100 or $150 fee.”

Every one of these messages was a gut punch for Burke’s five-year-old family-run business, Dresser Winery, which sits on an idyllic hillside outside Paso Robles and specializes in big, bold reds. Burke sent a note out to his wine club members earlier this year telling them he did not plan on increasing prices for the fall shipment, but he realized he could no longer honor the commitment.