Chicago's Lush Wine & Spirits is struggling to stay afloat in an increasingly turbulent wine market, driven largely by the rapid-fire tariffs imposed on European imports since President Donald Trump took office.
The Roscoe Village and West Town-based co-owner, Mitch Einhorn, 63, has seen his business' sales take a hit due to rising import costs. With many of its products being imported from Europe, Lush Wine & Spirits is highly vulnerable to the volatile tariffs that have been imposed on wine imports from eight European countries.
Since August, U.S. importers of European wines have been paying 15% tariffs, which has typically been passed down to consumers in the form of higher prices. Just last month, Trump threatened to impose an additional 10% tariff on these same products, rising to a whopping 25% by June - unless Greenland was allowed to be purchased by the U.S.
The wildly fluctuating tariffs have caused significant uncertainty for Einhorn, who had orders in transit from France when the proposed 200% tariff on French wine and Champagne was announced. However, Trump soon backed down on his threat after just a week.
Despite these challenges, Lush Wine & Spirits is still managing to stay afloat - albeit with some hiccups. The business has seen sales increase at its Roscoe Village location by 1%, while the West Town space saw sales dip by 9%. However, the expansion plans for the latter are being put on hold due to rising construction costs.
Einhorn is now focusing on expanding the business' offerings and improving its food prices. He's also working with a vineyard in Washington that's producing exclusive wines exclusively for Lush Wine & Spirits, as well as a winemaker in France on a longer-term project.
For Einhorn, owning a small business can be both exhilarating and challenging. "If you stop learning and doing new stuff, you cease to exist," he said, highlighting the importance of continuous innovation and improvement.
As for the tariffs themselves, Einhorn wonders whether President Trump fully understands the downstream impact they have on people's lives - particularly those working in retail and imports. When asked if he'd ever had to pick up the bill at a restaurant, he dryly replied, "When was the last time?"
The Roscoe Village and West Town-based co-owner, Mitch Einhorn, 63, has seen his business' sales take a hit due to rising import costs. With many of its products being imported from Europe, Lush Wine & Spirits is highly vulnerable to the volatile tariffs that have been imposed on wine imports from eight European countries.
Since August, U.S. importers of European wines have been paying 15% tariffs, which has typically been passed down to consumers in the form of higher prices. Just last month, Trump threatened to impose an additional 10% tariff on these same products, rising to a whopping 25% by June - unless Greenland was allowed to be purchased by the U.S.
The wildly fluctuating tariffs have caused significant uncertainty for Einhorn, who had orders in transit from France when the proposed 200% tariff on French wine and Champagne was announced. However, Trump soon backed down on his threat after just a week.
Despite these challenges, Lush Wine & Spirits is still managing to stay afloat - albeit with some hiccups. The business has seen sales increase at its Roscoe Village location by 1%, while the West Town space saw sales dip by 9%. However, the expansion plans for the latter are being put on hold due to rising construction costs.
Einhorn is now focusing on expanding the business' offerings and improving its food prices. He's also working with a vineyard in Washington that's producing exclusive wines exclusively for Lush Wine & Spirits, as well as a winemaker in France on a longer-term project.
For Einhorn, owning a small business can be both exhilarating and challenging. "If you stop learning and doing new stuff, you cease to exist," he said, highlighting the importance of continuous innovation and improvement.
As for the tariffs themselves, Einhorn wonders whether President Trump fully understands the downstream impact they have on people's lives - particularly those working in retail and imports. When asked if he'd ever had to pick up the bill at a restaurant, he dryly replied, "When was the last time?"