Trump’s tariffs and the fine art of missing the point by Thanos Kalamidas

There’s a moment in every debate where someone, usually the loudest in the room, decides that the best argument isn’t logic or reasoning but a simplistic punchline. And for Donald Trump, that punchline is always tariffs.

If something isn’t made in the U.S., slap a tariff on it. If jobs aren’t coming back to Michigan, tax foreign goods until they do. If China, the EU, or Mexico doesn’t bow down in submission, well, surely more tariffs will make them reconsider. It’s the economic equivalent of hitting a vending machine when it doesn’t give you your snack, satisfying for a second, but ultimately useless. And nowhere is this more evident than in the fine world of wine.

Yes, wine. Not a product you might immediately associate with tariffs and trade wars, but European wines serve as the perfect example of how Trump’s favourite economic weapon often misses the mark entirely. Because while tariffs can make imported goods more expensive, they do absolutely nothing about quality. And for many consumers, especially when it comes to something as refined as wine, price is only part of the equation.

Take French wines, for example. A Trump-imposed tariff might make that bottle of Bordeaux a few dollars pricier, but does that mean American consumers will suddenly start drinking nothing but California reds? Hardly. Wine enthusiasts don’t switch from a complex, aged Barolo to a random mass-produced alternative just because a tariff made their usual choice more expensive. They’ll grumble, they’ll sigh, but more often than not, they’ll just pay the higher price. Because, shocking as it may sound to the tariff-loving crowd, not everything in life is a zero-sum game where money is the only factor that matters.

This is precisely why Trump’s tariffs haven’t worked the way he wants them to. Manufacturing hasn’t rushed back to the U.S. despite the trade wars with China and Europe. Apple didn’t suddenly start making iPhones in Ohio just because Trump slapped tariffs on Chinese goods. And Americans haven’t abandoned European luxury products in favour of cheaper, domestically produced alternatives. Why? Because quality, expertise, and global supply chains don’t function on the same primitive logic as a reality TV boardroom.

It’s not just wine. Consider German automobiles. Trump’s dream scenario would have Americans ditching their BMWs and Audis for American-made cars the moment tariffs made the German models more expensive. But again, that’s not how people make purchasing decisions. A Mercedes-Benz doesn’t compete with a Ford pickup truck just because both have four wheels. Consumers who prioritize precision engineering and craftsmanship aren’t going to abandon those standards just because of an artificial price hike. They’ll pay the difference or look for other ways to get what they want.

The underlying problem with Trump’s tariff obsession is that it assumes economies function like a child’s lemonade stand where you just raise or lower prices and everything else follows accordingly. But the real world is a bit more complicated. Jobs don’t return to the U.S. simply because foreign products become more expensive. Companies don’t uproot and move factories based on an unstable tariff policy that might change every election cycle. And consumers, especially those with a taste for quality, don’t let artificial price barriers dictate their choices.

If Trump really wanted to bring manufacturing back, he’d focus on long-term investments in education, infrastructure, and incentives that actually make the U.S. an attractive place for businesses to build and grow. But that takes vision, patience, and a level of nuance that he’s never exactly been known for. Instead, we get the blunt instrument of tariffs, simplistic, ineffective, and fundamentally ignorant of how quality drives consumer behaviour.

So the next time someone tells you that tariffs are the solution to all economic woes, just point them to the nearest wine shop. Ask them why, despite Trump’s best efforts, the shelves are still lined with Italian Chiantis, Spanish Riojas, and French Châteauneufs. Then ask them why, no matter how many tariffs are imposed, a true wine lover will never replace a fine Bordeaux with a bottle of mass-produced mediocrity just because it’s a few dollars cheaper.

Because some things, Mr. Trump, just aren’t about the price.

PS An odd conclusion, for a millionaire, Donald Trump must be a real ...cheap sod!!!