Trump Tariff War Raising Supply Chain Costs for California Wineries
1.
Ask business owner Greg Martellotto his opinion of Trump tariffs & he’ll talk about the unintended consequences not being discussed & are invisible.
2.
“They’re trying to punish the Chinese for something that clearly has nothing to do with glass. And who’s paying the bill? Me!” says Greg.
3.
Most California wineries use bottles made in China. But now new tariffs on Chinese glass make managing costs & margins that much more challenging.
4.
Greg’s Martellotto Winery recently bottled a private label wine and he absorbed a 21% tariff on Chinese glass, a direct impact on his bottom line.
5.
Shifting glass supply vendors takes time, and many wineries, especially smaller ones, might not have that luxury.
6.
U.S. suppliers were sold out or backed-up with orders. He had to turn to buying glass from China to keep his business moving and bottle the wine.
7.
China can source wine from other countries like Australia, New Zealand, South America, which have much lower rates & free trade agreements in place.
8.
No one in the wine trade is exempt from some impact and even if the tariffs are short-lived, the consequences might not be.
9.
Greg asks: 1) What was the original intention of the duties & why? 2) Who do we intend to punish? 3) What are the unintended consequences?
10.
“If politicians don’t consider the impact on small businesses of these decisions, more small businesses will suffer and many will go out of business.”
Greg Martellotto | (619) 567-9244 | martellotto.com
