A possible $70,000 tariff bill has America’s largest limoncello maker on edge

Thousands of liters of Italian sparkling wine, ordered before President Donald Trump’s tariff threats, are on a boat headed to the United States. Before the wine is unloaded and handed to its recipients, they may need to pay a tariff bill big enough to put a kid through college.

Thousands of liters of Italian sparkling wine, ordered before President Donald Trump’s tariff threats, are on a boat headed to the United States. Before the wine is unloaded and handed to its recipients, they may need to pay a tariff bill big enough to put a kid through college. Small business owners say they’re paralyzed with indecision because of the escalating trade war – both real and threatened – as tariff spats spill into every aspect of their productions and sales. None of them know how soon the United States might resolve tensions with Canada, or make good on threats to impose a 200% tariff on EU alcohol. President Trump threated the massive retaliatory tariffs on European alcoholic beverages after the EU proposed higher tariffs on American whiskey among other products. That in turn, was in response to the U.S. imposing a 25% tariff on steel and aluminum imports. The EU is delaying the retaliatory tariffs to allow for time to negotiate, something American winemakers and liquor makers are hoping results in deescalating a trade war they never wanted any part of. Still, it’s unclear when – or if – Trump will ease off his 200% tariff threat. It’s a $70,000 question for Phil Mastroianni. Mastroianni founded limoncello brand Fabrizia Spirits in 2009 with his brother—using a family recipe in their parents’ garage. Fabrizia is now the largest US producer of limoncello, and this year Mastroianni expects the company will peel 1 million lemons to make their drinks including the original spirit and canned cocktails.