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How European wine tariffs could stun Nashville diners with higher prices
//food-wine.news-articles.net/content/2025/07/24 .. ld-stun-nashville-diners-with-higher-prices.html
Published in Food and Wine on Thursday, July 24th 2025 at 4:08 GMT by Tennessean🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
The price of European wine is climbing as a result of Trump-era tariffs. Here''s what that means for Nashville restaurants.
European Wine Tariffs Set to Spike Prices at Nashville Restaurants
NASHVILLE, Tenn. – As the global trade landscape continues to shift under the weight of international disputes, Nashville's vibrant dining scene is bracing for a significant hit. New tariffs on European wines, announced by the U.S. Trade Representative in late June 2025, are poised to drive up costs for restaurants and consumers alike, potentially reshaping menus and wine lists across Music City. The tariffs, which could add up to 25% to the import costs of wines from countries like France, Italy, Spain, and Germany, stem from ongoing retaliatory measures tied to broader trade conflicts, including disputes over aircraft subsidies and digital services taxes. For Nashville's restaurateurs, who have long relied on European varietals to complement their Southern-inspired cuisines, this development represents a perfect storm of economic pressure, supply chain disruptions, and changing consumer behaviors.
The roots of these tariffs trace back to a long-standing feud between the United States and the European Union. Initially sparked by a World Trade Organization ruling in 2019 that found the EU had provided illegal subsidies to Airbus, the U.S. imposed tariffs on a range of European goods, including wines. While a temporary truce was reached in 2021, tensions flared again in 2024 amid new disagreements over digital taxation policies affecting American tech giants. The latest round, effective starting August 1, 2025, targets alcoholic beverages specifically, with wines bearing the brunt. According to industry analysts, this could increase the wholesale price of a bottle of French Bordeaux or Italian Chianti by $5 to $10, a markup that restaurants will inevitably pass on to patrons.
In Nashville, where the restaurant industry has boomed alongside the city's tourism and music economy, the impact is already being felt in planning sessions and supplier negotiations. Take, for instance, The Catbird Seat, a high-end eatery known for its innovative tasting menus paired with Old World wines. Chef-owner Brian Morris expressed frustration in a recent interview, noting that European wines make up nearly 60% of his cellar. "We've built our reputation on offering unique pairings that transport diners to the vineyards of Provence or Tuscany," Morris said. "Now, with these tariffs, we're looking at a 20-30% increase in costs. We might have to raise prices on our wine pairings from $85 to over $100 per person, or worse, cut back on selections entirely."
This sentiment echoes across the city. At Husk Nashville, part of the acclaimed Sean Brock empire, the focus on Southern ingredients often includes European wines to balance bold flavors like smoked pork and heirloom grains. General manager Elena Ramirez highlighted the ripple effects: "Our suppliers are already warning us of shortages. If we can't get our hands on affordable Rioja or Sancerre, we'll have to pivot to domestic options, but that changes the entire dining experience. Customers come here expecting a global touch, and tariffs like these make it harder to deliver without alienating our budget-conscious crowd."
The economic ramifications extend beyond fine dining. Mid-tier spots like City House, with its Italian-influenced menu, and casual wine bars such as Barcelona Wine Bar in the Gulch are also scrambling. Barcelona's wine director, Sarah Jenkins, pointed out that tariffs disproportionately affect smaller importers who lack the leverage to absorb costs. "Big conglomerates might weather this, but independent restaurants like ours operate on thin margins," Jenkins explained. "We're talking about a potential 15% hike in by-the-glass prices, from $12 to $14 for a standard pour. Multiply that across a busy night, and it adds up quickly."
Local sommeliers and wine educators are sounding the alarm about broader industry trends. The Nashville chapter of the Court of Master Sommeliers has been hosting emergency webinars to discuss alternatives, emphasizing a shift toward New World wines from California, Australia, or even emerging regions in South America. "This is an opportunity to spotlight American producers," said certified sommelier Mark Thompson. "Wines from Napa or Oregon can rival their European counterparts in quality, often at a lower price point post-tariff. But it's not just about substitution; it's about educating consumers who have grown accustomed to classics like Burgundy or Barolo."
Yet, not everyone sees this as a silver lining. For many Nashvillians, European wines are more than just beverages—they're cultural touchstones. Events like the annual Nashville Wine Auction, which raises millions for charity through rare bottle sales, could see diminished participation if costs soar. Auction director Lisa Harrison noted, "Donors and bidders love contributing high-end European lots. If tariffs make those unaffordable, we might see a dip in enthusiasm, affecting our fundraising goals."
Consumers, too, are preparing for sticker shock. A survey conducted by the Tennessee Restaurant Association in early July 2025 revealed that 72% of respondents would reconsider dining out if wine prices rise by more than 10%. Regular patron Emily Carter, a marketing executive in East Nashville, shared her concerns: "I love grabbing a glass of Prosecco after work at places like Rolf and Daughters. But if that jumps from $10 to $13, I might just stay home with a bottle from the liquor store instead."
The tariffs' effects ripple into the supply chain, impacting distributors like Best Brands, one of Tennessee's largest wine importers. CEO David Reynolds described the logistical nightmare: "We're dealing with delayed shipments from ports in New York and Charleston, compounded by higher duties. Some smaller European producers might pull out of the U.S. market altogether, reducing variety. For Nashville, which has seen a 25% growth in wine-focused establishments over the past five years, this could stifle that momentum."
Economists warn that the broader implications for Tennessee's economy are significant. The state imports over $200 million in European wines annually, supporting thousands of jobs in hospitality and distribution. A report from the University of Tennessee's Haslam College of Business projects that sustained tariffs could lead to a 5-7% drop in restaurant revenues statewide, with Nashville bearing the heaviest burden due to its concentration of upscale venues. "This isn't just about wine," said economics professor Dr. Laura Simmons. "It's about trade policy's trickle-down effects on local economies. Restaurants might cut staff hours or delay expansions to offset costs."
In response, some Nashville restaurateurs are getting creative. At Josephine, chef Andy Little is experimenting with house-made infusions and non-alcoholic pairings to reduce reliance on imported wines. "We're blending local spirits with herbs to mimic wine profiles," Little said. "It's innovative, but it's born out of necessity." Others, like the team at Folk in East Nashville, are partnering with domestic vineyards for exclusive bottlings, aiming to foster a "buy local" ethos amid the turmoil.
Advocacy groups are pushing back. The Wine Institute, representing U.S. producers, has lobbied Congress for relief, arguing that retaliatory tariffs harm American businesses more than they punish Europe. In Washington, D.C., bipartisan efforts are underway to negotiate a permanent resolution, but with the 2026 midterms looming, political gridlock remains a hurdle.
For now, Nashville's food and wine community is in a holding pattern, watching as the August 1 deadline approaches. As one anonymous owner put it, "We've survived pandemics and recessions, but trade wars feel like an invisible enemy. We just hope this doesn't sour the taste of what makes dining in Nashville special."
As the city known for its honky-tonks and hot chicken navigates this challenge, the tariffs serve as a reminder of how global policies intersect with local plates. Whether through adaptation or advocacy, Nashville's resilient spirit will likely prevail, but not without some tough swallows along the way.
(Word count: 1,048)
Read the Full Tennessean Article at:
[ https://www.tennessean.com/story/money/2025/07/08/european-wine-tariffs-nashville-restaurant-prices/84461506007/ ]
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