The flutes might soon be a little less full at one New York City champagne bar, thanks to sweeping US tariffs on European imports that include French wine and champagne.
Hervé Rousseau, the owner of Flûte Bar, said he’s considering pouring about 10% less per glass for French bottles to avoid raising prices, and he plans to be upfront with customers. “We’ll explain what we’re doing, even do some Instagram Reels to talk about it,” he said.
Earlier this week, President Donald Trump announced a 90-day pause on “reciprocal tariffs” just 13 hours after they took effect, impacting dozens of trade partners, including the European Union. A 10% tariff remains in place for most countries during the pause, though the sudden policy whiplash has fueled market volatility. Rousseau intends to start the smaller pour if a 20% tariff for EU goods is implemented.
The move is a clear example of shrinkflation: getting a little less for the same price. Companies often hope most people won’t notice or won’t care.
And it’s not just champagne bars. Last year, a LendingTree analysis found that about a third of nearly 100 everyday products shrank in the preceding four or five years. Goods like toilet paper and paper towels were among the most affected, shrinking by way of fewer sheets per roll.
Tucked inside a former speakeasy in Midtown Manhattan, Flûte sources about 75% of its wine inventory from Europe, mostly France. So far, the bar hasn’t felt the sting of tariffs. Rousseau said he has stock on hand from US-based suppliers that will likely last another month or two. But he expects pressure to build once that runs out.
Rousseau said he’s not overly worried about tariffs on their own — Flûte has weathered plenty of crises in its 27 years, from 9/11 to the 2008 financial crash. “New York always adapts,” he said. But if the broader economy takes a hit on top of price pressures, that could be a much bigger problem, he added.
Instead of immediately raising prices, he’s planning to spotlight Intîme, a sparkling wine from Long Island that’s exclusive to Flûte. The champagne alternative is made with organic ginger using a 1920s French recipe, and produced using the traditional Champagne method. “It’s the only one in the world made this way,” Rousseau said.
He’s also leaning more on champagne cocktails, which use just a splash of French champagne over mostly domestic ingredients. “Because it’s maybe only 10% or 20% champagne, we can keep the pricing more stable,” he said.
If the big-name champagne houses raise prices, Rousseau said he may pass some of that cost on, but sees it as a chance to engage more deeply with customers. “We’ll go deeper with the wine, give more context and storytelling,” he said. “It’s a good opportunity to turn it into an experience.”
Flûte isn’t alone in bracing for impact. Even before the current tariffs took effect, wine and spirits businesses were already searching for a response to the uncertainty.
Last month, President Trump threatened a 200% tariff on European wines and spirits in response to the European Union’s proposed 50% tariff on American whiskey. Wine collectors paused purchases, and some restaurants began stockpiling as a result.
The EU later dropped its whiskey tariff. While Trump hasn’t formally withdrawn his retaliatory threat, the pressure has eased – at least for now.
Other businesses are adjusting, not by shrinking pours or packages, but by showcasing US brands.
Merchants Hospitality, which operates restaurants across New York, is using the trade war to spotlight American producers – from boutique winemakers like Bedrock and Antica Terra to domestic spirits like WhistlePig and St. George. “We see this as an opportunity rather than a setback,” Chief Executive Officer Abraham Merchant said.
Full Glass Wine Co., which owns online wine brands like Wine Insiders and Scout & Cellar and sells directly to consumers, is also buying more US wines and working with suppliers to absorb costs. About 30% of its portfolio comes from Europe, the company said.
“We’ll just reallocate a bit,” said CEO Louis Amoroso. “And we’re taking less margin.” The company also plans to lean more on domestic sparkling wines – including California bubbly – to offset tariff pressure on champagne.
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