4 Drinks That Tariffs May Cause To Skyrocket In Price

The wide range of tariffs threatened or enacted by President Donald Trump against other countries has introduced significant chaos and unpredictability to international trade. For consumers, that could mean higher prices on some of their favorite drinks.

The President has vaguely threatened 25% tariffs on goods imported from the European Union, including important wine-producing countries like France and Italy, putting their products in danger of price hikes. Meanwhile, Trump followed through on his threatened tariffs against Chinese goods. This laid an additional tariff on top of the 25% imposed during his first term, likely making you pay even more for some beverages like apple juice and tea imported from China.

Trump's tariff standoff with Mexico and Canada has drawn significant attention, but the President recently announced a temporary exemption for goods traded under the U.S., Mexico, and Canada trade agreement (USMCA) until April 2. The USMCA directs member states to treat each other's alcoholic beverage imports as though they were domestically produced, somewhat lessening the trade war's consumer impact.

Famously, Champagne must be produced in the Champagne region of France, so any bottle bearing that name could see higher prices with President Trump's threatened E.U. tariffs. But such requirements aren't unique to Champagne. French wine has an entire classification system to mark its authenticity and quality. And since the U.S. purchases nearly 20% of all French wine exports, according to Les Grappes, potential tariffs could devastate the industry.

Grades vary, but the best French wines are labeled with either an Appellation d'origine protégée (AOP) or Appellation d'origine contrôlée (AOC.) These labels mean that the wine was grown in a specific locale in France, with regulations on grape types and farming practices intended to preserve the high quality of French wine. Connoisseurs seek out these appellations, which cannot legally be duplicated.

Another famous type of wine under this system is globally renowned Bordeaux wine, a 2,000-year-old tradition in southwestern France. The Bordeaux region has at least 60 distinct AOCs; similar to Champagne, any bottle labeled "Bordeaux" must come from one of them.

Champagne is not the only regionally-specific sparkling wine that is under potential threat from President Trump's E.U. tariffs. Like its French counterpart, prosecco can only bear that name if it comes from specific regions of northeastern Italy, under quality control regulations mandated by the Italian government.

Since 2009, prosecco has enjoyed the highest classification status for Italian wines, Denominazione di Origine Controllata e Garantita (DOCG), meaning its origin is controlled and a certain quality is guaranteed. From growing the grapes to bottling the bubbles, the entire winemaking process must take place on-site at the vineyard. This also means that even the most affordable grocery store prosecco is still an Italian import — like the award-winning Aldi Belletti prosecco – and could soon see big price hikes.

As in France, the Italian regulatory regime covers many wines and regionally restricts the best. Another notable Italian wine with DOCG status is Chianti. This fine red wine must legally be made and bottled in specific regions around Tuscany, central Italy.

Not all of President Trump's tariffs are mere threats, of course. He already enacted 20% tariffs on all Chinese imports, a decision that will likely make Americans pay more for apple juice and products made with apple juice.

Apple juice is a popular drink on its own, but it is also a common ingredient in many fruit juice drinks and blends that might not even taste like apples. Demand for this product is high enough to make the U.S. the world's top importer of apple juice — and China is one of the world's top exporters, according to data gathered by the Observatory of Economic Complexity.

China has helped supply the American demand for apple juice for years. As far back as 2011, imports of Chinese apple juice concentrate accounted for ⅔ of U.S. apple juice consumption, according to USDA data. Juice concentrate is made by removing the water from fresh juice, significantly improving its shelf life for shipping overseas and incorporation into shelf-stable juice blends.

Tea is another popular drink in the U.S., especially sweet tea, a Southern classic with less-than-Southern origins (check out our article to find out its true background). However, this American classic could also become more expensive under Trump's tariffs against China. According to data from the International Trade Center, China is the fourth largest tea exporter to the U.S.

About half of this was black tea, while slightly less than half was green tea, according to data from Firsd Tea, a U.S. subsidiary of a major Chinese tea company. So, Trump's tariffs could raise the price of either one of these drinks.

Unfortunately for tea drinkers, the other leading suppliers to the U.S. are also in Trump's general tariff crosshairs. Japan, India, and Argentina, the top three tea exporters to the U.S., are all already facing tariffs or tariff threats on other products. If the trade war worsens, it could grow to include their teas, too.