{"id":2503233,"date":"2025-10-26T15:33:02","date_gmt":"2025-10-26T19:33:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wine-tariffs-shows-consumers-will-pick-up-part-of-trumps-tab\/"},"modified":"2025-10-26T15:38:14","modified_gmt":"2025-10-26T19:38:14","slug":"wine-tariffs-shows-consumers-will-pick-up-part-of-trumps-tab","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wine-tariffs-shows-consumers-will-pick-up-part-of-trumps-tab\/","title":{"rendered":"Wine tariffs shows consumers will pick up part of Trump&#8217;s tab"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwine-tariffs-shows-consumers-will-pick-up-part-of-trumps-tab%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2503233&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A study conducted by Duke University&#8217;s Department of Economics analyzed the impact of wine tariffs imposed during the 2019-2021 U.S.-Europe trade dispute. The research found that American consumers ended up paying more than the tariff amount itself on European wines. Although foreign wine producers lowered their prices slightly to stay competitive after a 25% tariff on wines with 14% alcohol content or less,U.S. importers raised prices to distributors, and retailers added further markups. Consequently, retail prices for consumers rose by about 6.9%, meaning consumers paid approximately $1.59 more per bottle while the tariff collected at the border was only $1.19.<\/p>\n<p>The study highlighted that tariffs increased costs not just for consumers but affected every stage from importers to retailers, ultimately causing consumers to bear most of the burden. It also observed &#8220;tariff engineering,&#8221; where wine makers modified product classifications (e.g., alcohol content labels) to reduce tariff costs.<\/p>\n<p>These <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yes-safe-smoking-kits-include-free-crack-pipes-we-know-because-we-got-them\/\" title=\"Yes, Safe Smoking Kits Include Free Crack Pipes. We Know Because We Got Them.\">findings contradict claims<\/a> from the Trump management that tariffs would not <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/psaki-unfair-and-absurd-to-say-companies-would-raise-prices-in-response-to-tax-increases\/\" title=\"Psaki: \u2018Unfair and Absurd\u2019 To Say Companies Would ... in Response to Tax Increases\">raise consumer prices<\/a>, revealing that consumers bear a notable portion of tariff costs. The research suggests that similar effects are likely with the broader tariffs imposed by the administration on various goods. Additionally, price increases took considerable time to reach consumers and remained elevated for up to a year after tariffs were removed, indicating lasting price effects beyond the tariff period.<\/p>\n<p>the study underscores the hidden consumer costs of tariffs and offers insight into how trade policies affect prices in the U.S. market.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Study of wine tariffs shows consumers will pick up part of Trump&rsquo;s tab<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2382987\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square)&nbsp;&ndash;&nbsp;A study from&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/higher-education\/\">Duke&rsquo;s<\/a> Department of <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/economics\/\">Economics<\/a> found that consumers&nbsp;ultimately paid more than the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/tariffs\/\">tariff<\/a> cost on European wines during a 2019&ndash;21 trade dispute, a&nbsp;finding&nbsp;that&nbsp;could have significant implications for U.S. consumers as a fresh wave of tariffs around the globe affects prices.<\/p>\n<p>The upshot was that Americans paid higher costs than the federal government collected in tariff revenue.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3864403\/most-voters-against-federal-government-controlling-education-poll\/\">Most voters against federal government controlling education: Poll<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/3864383\/scott-bessent-china-tiktok-deal\/\">Scott Bessent confirms China agreed to TikTok deal&nbsp;<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/congressional\/3864361\/republicans-stall-redistricting-efforts-indiana-kansas\/\">Republicans stall redistricting efforts in Indiana and Kansas<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>&ldquo;Our findings contain both good and bad news for the American consumer. The good news is that consumer prices for imported wines rose by less than the percentage increase in the tariff,&rdquo; Duke Associate Professor of Economics Felix Tintelnot told The Center Square. &ldquo;The bad news is that our <a href=\"https:\/\/amzn.to\/3YuVZYV\" >estimates suggest consumer cost increases exceeded<\/a> the tariff revenue received by the U.S. government.&rdquo;<\/p>\n<p>Tintelnot and his colleagues studied wine tariffs over several years using public&nbsp;data&nbsp;and private data from a large wine importer. The&nbsp;National Bureau of Economic Research&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.nber.org\/papers\/w34392\">published<\/a>&nbsp;the study.<\/p>\n<p>The research found that foreign wine makers lowered prices in response to the tariffs. When the 25% tariff hit wines with 14% alcohol content or below, producers lowered prices by about 5.2% to remain competitive. However, U.S. consumers never saw those savings. In response, U.S. importers raised the prices they charged distributors by about 5.4%, which meant they absorbed a portion of the tariff as the wine made its way to consumers. Next came retail markups.<\/p>\n<p>By the time bottles reached U.S. consumers, retail prices had risen by 6.9%. While this means the pass-through of the 25% tariff is incomplete, markups along the way meant American buyers paid about $1.59 more per bottle in one example, exceeding the actual $1.19 tariff paid per bottle at the border.<\/p>\n<p>&ldquo;What consumers paid more per bottle exceeded what the government took in,&rdquo;&nbsp;Tintelnot told The Center Square.<\/p>\n<p>Trump and the White House have said that tariffs won&rsquo;t raise consumer prices and that foreign nations will absorb the costs. Trump&rsquo;s latest wave of tariffs exceeded those on wines during the period&nbsp;Tintelnot and his colleagues studied. Trump has hit every U.S. trading partner with tariffs of at least 10%, with some countries facing rates above 30%. In addition to those import duties, Trump has tariffs on imported steel, copper, aluminum, automobiles&nbsp;and&nbsp;auto parts, among others. Trump says he wants to bring back manufacturing jobs lost to low-wage countries in recent decades, shift the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-to-propose-massive-new-legislative-package-cost-to-be-borne-by-taxpayers\/\" title=\"Biden to propose massive new legislative package, ... to be borne by taxpayers\">income tax burden<\/a> away from Americans&nbsp;and&nbsp;pay down U.S. debt, which recently topped $38 trillion.<\/p>\n<p>Tintelnot said the 2019-21 wine tariffs only affected some countries and some&nbsp;wine, giving researchers a control group of wines unaffected by the tariffs.&nbsp;<\/p>\n<p>The study showed that not just consumers paid more, but nearly everyone along the way.&nbsp;Tintelnot said the tariffs squeezed margins for importers, and American consumers still paid more despite cost cuts by producers.&nbsp;More than even the government collected in tariff revenue, mainly because tariffs were applied when the wine entered the country, before&nbsp;price markups for&nbsp;wholesale and retail sales.<\/p>\n<p>While the study was limited to wine,&nbsp;the lessons can likely be applied&nbsp;to the new tariffs Trump has&nbsp;put in place&nbsp;using executive orders since re-taking the White House in January.<\/p>\n<p>&ldquo;Still, the consumer bears most of the burden,&rdquo;&nbsp;Tintelnot told The Center Square.&nbsp;<\/p>\n<p>That lines up with a recent&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.thecentersquare.com\/national\/article_07abd53e-6bce-4dec-8911-345d1cea89e3.html\">report<\/a>&nbsp;from Goldman Sachs. According to a report from the global investment bank and financial services company, U.S. consumers will pay most of the cost for Trump&rsquo;s tariffs. The report said American consumers will pay 55% of tariff costs, U.S. businesses will pay 22%, and foreign exporters will pay 18%.<\/p>\n<p>The wine study also found that prices weren&rsquo;t the only thing affected by tariffs. Researchers also found evidence of tariff engineering,&nbsp;which can include&nbsp;small&nbsp;changes to the product or its label to lower import duties.&nbsp;<\/p>\n<p>&ldquo;There was a big change in wine labels, and a lot of wines that previously classified as less than 14% alcohol became classified as above 14% alcohol&nbsp;in order to&nbsp;avoid paying the tariffs,&rdquo;&nbsp;Tintelnot told The Center Square.&nbsp;<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3863739\/tariff-exclusion-process-big-departure-trump-first-term\/\">TARIFF EXCLUSION PROCESS IN TRUMP 2.0 A BIG DEPARTURE FROM FIRST TERM<\/a><\/strong><\/p>\n<p>In addition, researchers noticed a much longer lag time than they had expected for the higher prices to reach consumers. They also found that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-suffered-their-worst-day-of-the-year-on-tuesday\/\" title=\"Stocks Suffered Their Worst Day of the Year on Tuesday\">higher product prices<\/a> last longer after the government removed the tariffs.<\/p>\n<p>&ldquo;It takes almost a year until you see&nbsp;the significant&nbsp;change in retail price that affects the consumers, and it took around three months until the importer renegotiated prices with the exporter, and then also to raise prices to the U.S.,&rdquo;&nbsp;Tintelnot told The Center Square.&nbsp;&ldquo;What&rsquo;s interesting is&nbsp;alsodon&rsquo;t&nbsp;go down right away when the tariffs go away.&nbsp;In fact, they stayed elevated for another year after&nbsp;the tariffs were removed.&rdquo;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wine tariff study finds consumers bear part of Trump&#8217;s costs<\/p>\n","protected":false},"author":2869,"featured_media":2503234,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25189580435087.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[52765,50406,42205,15143],"class_list":["post-2503233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-consumers-2","tag-tariffs-2","tag-trade-policy","tag-wine"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25189580435087.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2503233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2869"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2503233"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2503233\/revisions"}],"predecessor-version":[{"id":2503237,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2503233\/revisions\/2503237"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2503234"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2503233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2503233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2503233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}