How Tariffs Could Lead to Boom Times for Wine’s Secondary Market

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While tariffs have led to much agita in the wine world, one part of the industry has seen a silver lining of late: the secondary market. One major wine reseller has seen a large bump in sales, and others predict that their business will begin to really heat up as current inventory declines and higher prices come into play across not just imported wine, but the entire market. While America’s current 10 percent baseline tariff on all imported goods is far lower than the 200 percent President Trump threatened on European wine and spirits, the additional 20 precent tariff on goods from the European Union slated to go into effect on July 9 has everyone from winemakers and trade groups to importers and distributors to restaurateurs and wine retailers reeling. But that is also creating opportunities.

The Trump administration’s erratic tariff rollout has added to the uneasiness, causing producers, wine regions, and even entire nations to re-think their strategy of exporting wine into the American market. “Until there is clarity around whether the tariffs will actually be implemented, and at what rate, it is impossible to accurately predict the impact on Italian wine exports to the United States,” says Matteo Zoppas, president of the Italian Trade Agency. “What we do know for certain is that tariffs are harmful, regardless of their form. Even the mere announcement creates market uncertainty.”

Despite the importance of the American market to their bottom lines, Italian wine producers are exploring exporting to other countries if necessary. While currently there is still plenty of Italian wine in shelves and on wine lists in the across the country, as tariff-related price increases drive consumers away, the total amount of Italian wine in the U.S. may begin to decline. This effect will be seen across other European wine–producing countries such as Spain, France, and Germany, as well as any other nations around the globe whose products are additionally taxed on entry.

Italian wine, especially bottles from Piedmont, home to Barolo and Barbaresco, and Tuscany, the land of Brunello, Chianti Classico, and Super Tuscans, is among the most sought-after categories at Unicorn, a large spirits auction house that is projected to do between 10 and 15 percent of its $50 million annual business in wine this year. Unicorn CEO and cofounder Phil Mikhaylov tells Robb Report that other areas that are traditionally strong in the re-sale market, such as Bordeaux, Burgundy, and Champagne, are also seeing a lot of interest “as collectors look to secure wines already stateside before any further volatility affects access or pricing.”

Many wine importers are holding back on shipments to the United States until they have a better sense of the situation, causing a void that can be filled by the secondary market. “We’ve seen a noticeable uptick in interest from buyers looking to secure European wines that are already in the U.S., especially among collectors who are concerned about potential delays or price increases,” Mikhaylov says. “The uncertainty around tariffs and shipping disruptions has made provenance and immediate availability even more important.”

While Christie’s has not seen the immediate bump in sales noted at Unicorn, Paul Tortora, international director of the auction house’s wine department, says they “know that collectors are closely watching the situation.” He points out that with an unclear picture on the final price of wines not yet on our shores, “U.S.-based stock offers both immediacy and certainty.” The unpredictability that is causing volatile swings across all major markets has wine collectors considering their sourcing methods. “We’re seeing savvy buyers rethinking strategies, looking for wines with strong provenance, ready-to-ship logistics, and long-term value,” Tortora says.

The time to strike really seems to be right now. “For collectors and investors looking for solid cases of back vintage and very-hard-to-get wines, Europe is often the only source.” says Dave Parker, CEO and owner of Benchmark Wine Group. “With the current 10 percent tariff on those wines, costs will clearly go up here in the U.S. over time. Because of the large inventory we hold that we sourced before the tariffs, we will try to minimize price increases to consumers in the short term, but they are inevitable unless tariffs are removed.” At Uovo, a luxury storage and logistics provider for fine art, fashion, and wine, director of wine sales Ian Dorin cites overall market uncertainty as a deterrent to a sense of consistency in the wine market, whether primary or secondary. “I think the high end of the market might be a little stale until we can see some stability in the financial markets,” Dorin tells Robb Report, pointing out that “secondary market prices increase when interest rates are low,” which is a possibility if the Federal Reserve cuts rates.

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Until then, Dorin says he’ll monitor the market closely on behalf of his clients. Christie’s Tortora foresees the resale market heating up as tariff implementation moves from rumor to reality. “If tariffs persist, we may also see increased activity at auction as collectors look to capitalize on high-quality U.S.-based cellars,” he says. Meanwhile, savvy buyers recognize the advantage of purchasing wine that has already made its way to our country without the added burden of tariff-induced price increases. In the current tariff climate, many insiders are taking the tact of finding ways to hedge their positions.

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