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How 200% tariffs on E.U. liquor and wine could affect local businesses

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LAS VEGAS (KTNV) — If you enjoy a glass of wine or a cocktail when you go out, you could soon be paying more.

President Donald Trump is planning to impose 200% tariffs on European alcohol imports.

This move comes after the European Union announced plans to impose a 50% tariff on American whiskey, retaliating against U.S. tariffs on steel and aluminium imports.

Many business owners like the owner of Firefly, John Simmons, are pretty concerned.

VIDEO: Local business owner voices concerns about tariffs on E.U. wine and liquor

How 200% tariffs on E.U. liquor and wine could affect one local business

Abel Garcia: John, you were telling me that one of the most popular items here at your restaurant is actually a sangria that uses wine from the European Union. How did you feel when you heard about this?

Simmons: Oh man, I was bummed. Sangria is the lifeblood of this restaurant. We use Spanish wine, and I also use French cognac, so it’s a double whammy.

Garcia: One of these bottles you were just pointing out to me is about $20 right now for you to purchase.

Simmons: About $20. It's a Spanish wine.

Garcia: Now with a 200% tariff, you're talking almost $60 a bottle.

Simmons: You would normally pay $10 for a glass. I'm going to have to charge $30 for a glass of wine. Everybody wants Jameson on St. Patrick's Day. Irish whiskey— that's Ireland, E.U., obviously.

Garcia: How do you think your customers will respond to that?

Simmons: I don’t think they’re gonna go for it, to tell you the truth. I’m gonna have to find substitutes. There’s no substitute for Spanish wine. We are a Spanish-style restaurant.

I ran into Christie Herron, a visitor from Los Angeles.

She says she enjoys a good cocktail or a glass of wine, but if these tariffs hit, she thinks some people will think twice.

Garcia: How does it make you feel as a person who's paying for some of these products?

Herron: I’m frustrated, and I think ultimately it’s gonna mostly affect small businesses like this. I think what’s going to happen is patrons are going to just not go out anymore.