Tariff Update: Navigating a New Reality with the Same Values
There are times in this business when the ground shifts under your feet. Some changes are seasonal—tied to harvests, vintages, or evolving tastes. Others arrive with more permanence. The introduction of new tariffs on imported wine and spirits is one of those moments.
For those of us deeply embedded in the rhythm of global trade, this isn’t abstract policy—it’s lived experience. It touches everything: the winemaker who barrels something special with export in mind; the importer planning a pricing structure around historical norms; the customer who makes an early commitment based on trust in the system. When any part of that chain gets disrupted, we all feel it.
While our terms and conditions state that customers are liable for tariff differences between order and arrival, we’ve made a conscious choice to handle things differently. For months now, we’ve quietly absorbed those costs—well into the six figures—on behalf of our customers. Not because it was easy. Because we believe our long-term relationships are worth far more than a tariff bill. The wines were purchased in good faith, and our responsibility—even in moments like this—is to deliver with integrity.
Meanwhile, others have taken different routes. We’ve seen shipments stalled, storage fees added abroad, orders canceled without notice, and in many cases, surprise tariff bills delivered after the fact. But bottles are arriving here at K&L. Orders are shipping. Commitments are being honored.
What’s made all this more complicated is that the tariffs aren’t the only variable. The U.S. dollar has weakened against the Euro, raising the real impact of the 15% tariff closer to 25% on many of our open orders. These aren’t costs we anticipated when we built our buy lists months ago, and they affect inventory we’ve yet to even receive. But we’re working through it—leaning on relationships, renegotiating where we can, tightening where we need to, and thinking long-term as always. Prices will take time to stabilize. We’re not in a rush to force that correction—we’re here to manage it.
Yes, there are inflationary pressures in the market. Tariffs have added a new dimension to that. But wine is never one-directional.
At the same time, we’re seeing price pressure in the opposite direction. Some producers are easing back; others are realigning based on demand. This is true across both wine and spirits, where—let’s be honest—there seem to be more bottles in circulation than the market can reasonably absorb. But here’s the thing: when the pricing is right, the interest is still there. The energy is still there. Distinctive, one-of-a-kind bottles still draw attention.
We’re seeing that every day. In-store traffic has been strong. Online engagement is growing. Our auction platform continues to thrive. And across the board, the appetite for great bottles with provenance and purpose is as strong as ever.
These past few months have presented some of the most complex challenges in K&L’s 50-year history. But we’ve approached them the way we always have: with patience, with a clear head, and with a steady hand. We’re not here to dramatize the moment—but we’re also not here to pretend it’s simple. It isn’t. It’s evolving. But we’re navigating it—together, with our partners, and with you.
Some bottles might take longer to arrive. Some prices might take longer to find equilibrium. But our mission hasn’t changed. And our promise hasn’t either.
We appreciate the trust you’ve placed in us. We intend to keep earning it.
- Ryan Moses, K&L Chief Procurement Officer and Bordeaux Buyer