Q&A with Leaders in Wine Law
Alcohol Beverage attorney Michael Newman was interviewed by The Press Democrat about the current state and future of the wine industry under the Trump Administration. In this article, Mr. Newman and other leaders in wine law discuss the impact of tariffs and declining demand on the industry. The group also offers insight on how to address labor shortages while staying compliant with immigration and wage laws.
"While the tariff regime does not yet appear to be set in stone, there are several legal avenues to mitigate the effects of the shifting policies on the U.S. wine industry," said Mr. Newman. "First, winemakers and distributors should evaluate their supply chain from a regulatory perspective. Identifying the countries of origin, customs classifications and valuation of products and equipment used in the supply chain will be helpful in minimizing the total amount needed to be paid under the new tariffs. Second, understanding existing contractual obligations with suppliers can open avenues for negotiating prices for imported products to reduce the total cost passed on to the consumer. Finally, while there are currently no formal exemptions to tariffs available, there may be political avenues to make a case for specific industry sectors."
READ: Q&A with Leaders in Wine Law (Subscription required)