Tariff pricing is already popping up at D.C. bars and restaurants

Driving the news: Cork Wine Bar & Market, a popular independent shop and restaurant specializing in Old World wines, hosted a "Tariff Sale" at their Logan Circle and Spring Valley stores over the weekend, with 10%-15% discounts on bottles and cases. More sales are expected.

• Co-owner Diane Gross tells Axios the plan is to clear the shelves, raise capital, and bulk-buy their best-sellers before prices spike — all while looking for temperature-controlled storage space in the DMV.
• "The only option we have is to stock up and hope to be able to run with that wine as long as we can to ease in some pricing changes," says Gross, who's operated the family-run business for nearly two decades.

State of play: President Trump levied — and in some cases, walked back — 25% tariffs that targeted goods from Canada and Mexico to China earlier this month, as well as steel and aluminum imports. The administration announced Tuesday a new plan for sweeping tariffs, with more details coming April 2.

• For DMV food businesses, some of the biggest impacts could include increased prices on Mexican citrus and avocado, Canadian seafood (e.g. lobster, PEI mussels) and meats, and everyday Chinese goods like straws and plastic containers.

Meanwhile, a huge looming threat is Trump's proposal to slap 200% tariffs on European wines — which one importer condemned as a "financial death sentence" for those working in the industry.

• The plan, triggered by a proposed EU tariff on American whiskey, could essentially kill the American market for E.U. wines and spirits.
• While the administration argues the move will be a boon for domestic producers, many — including California wineries — warn it's damaging to the industry overall, there's not enough American supply to meet demand, and costs will go up for consumers.

What they're saying: "There's a lot of fear in the wine community about what this means for business," says Gross. "It all goes back to capital — we don't have $100,000 laying around to invest in wine. Small businesses are taking the brunt, and it could put us out of business."

Then, there are the hidden costs. At Maxwell Park wine bar in Shaw, owner Brent Kroll isn't just worried about one of his popular French reds shooting up from $15 to $40 a glass. It's "cheap restaurant supplies" from China — straws, napkins, trash bags — that the whole industry runs on.

• "When you look at your [profit/loss] for a business, that's a death by a thousand cuts," says Kroll. "If tariffs hit all your little dry goods, that's scary."

The intrigue: Kroll rolled out a special "tariff menu" in 2019 when the first Trump administration levied a 25% tax on wines from European countries like France and Spain, and threatened a 100% increase. The idea was to educate consumers on what wines would cost pre-and-post tariff — say, $16 vs. $32 for a glass of French sparkling.

• He's considering running a 2025 version, along with other D.C. bars and restaurants to show the widespread impacts.

• "There's a big misconception that all this affects is fancy sommeliers and fancy wine drinkers, but it's everywhere and everyone — sales reps, truck drivers, you'll never know who's impacted."

Between the lines: Many of the business owners Axios spoke with referenced the unique hardships in D.C. right now with federal workers losing jobs, limited employment opportunities, noticeable spending drops, and price increases — not just tariffs, but inflation concerns, and an I-82 minimum wage jump coming in July, which will raise labor costs from $10 to $12 per tipped employee.

• "It reminds me of when Covid started," says Kroll. "People are taking a hard look at everything — leases, trash contracts, things they don't need — and scrambling to weather the storm."

Threat level: High — the proposed tariffs could wipe out some business concepts. Take Apéro, Georgetown's buzzy Champagne and caviar bar.

• Owner Elli Benchimol tells Axios she's contemplating a change of concept given "everything is imported" — and expected hikes on wines and European- and Chinese-produced caviar would be "devastating."
• Apéro recently ditched citrus in drinks (it's available by request) and raised brunch egg prices to help cover costs. But it won't be enough if tariff hikes come through, even though Benchimol points out that changing courses "is expensive and confusing to our clientele."

Reality check: The hospitality industry is long accustomed to price fluctuations and volatile markets, and many are eyeing substitutions to get by. Take fast-casual taqueria Taco Bamba with over a dozen DMV locations and counting — all fueled by guacamole, avocado-based salsas and avo toppings whose prices may jump.

• "We've always found creative ways to stay profitable and grow," says Albisu, who's exploring sources for Peruvian avocados and produce from farms in Chile and Argentina.

What we're watching: How and if tariffs materialize over the next two weeks, and how they play out with larger global markets.