Burgundy wine producers are increasingly worried about the impact of Trump's tariffs on European wines, which could jeopardize their exports to the US. As discussions of increased tariffs loom, the region’s winemakers and industry representatives voice their concerns over declining sales and the ripple effects of the ongoing trade war on both American and French sides of the industry.
Grappling with Tariffs: Burgundy Winemakers Face Challenges Amid Trump’s Trade Policies
Grappling with Tariffs: Burgundy Winemakers Face Challenges Amid Trump’s Trade Policies
The ongoing trade tensions due to Trump's tariffs have created uncertainty for Burgundy's winemakers, threatening access to their most lucrative market, the US.
In the prestigious wine region of Burgundy, France, winemakers are wrestling with the implications of tariffs imposed by former President Donald Trump, jeopardizing their well-established access to the American market. As the largest foreign market for Burgundy wines, the United States constitutes a vital lifeline for local producers.
Under drizzly skies, Élodie Bonet, a vineyard worker, diligently trims vine shoots, optimizing them for grape production. At the nearby Domaine Cecile Tremblay winery, owner and winemaker Cécile Tremblay discusses the impact of tariffs on her business, emphasizing a reliance on the US market, which consumes a substantial portion of her output. "For the United States, it's around 10% of the production; it's a big production for me!" she notes, though she refrains from elaborating further on her concerns amid the potentially volatile trade climate.
Trump's tariffs on European wine began as a speculative 200% mark-up before settling at 10% on April 5, 2023. However, the specter of a future 50% tariff looms, deeply troubling Burgundy’s winemakers. François Labet, president of the Burgundy Wine Board, reinforces this sentiment, highlighting the U.S.'s dominance as both the largest volume and value market for Burgundy wines. Notably, despite a global decline in French wine exports, sales to the U.S. surged by 16% last year.
The soft, lighter profile of Burgundy's pinot noir and chardonnay varietals continue to captivate American consumers, distinguishing these wines from their bolder New World counterparts. However, if tariffs climb to 20% as threatened, Labet fears a catastrophic regression in trade similar to the 50% decline seen during Trump’s previous import duties.
Jerome Bauer, head of the French National Wines and Spirits Confederation, sounds the alarm, recalling a staggering $600 million drop in export revenue during prior trade disputes. With the current tariffs affecting even more categories of wine than before, the stakes are higher than ever for France’s winemakers.
Remarkably, even American winemakers express discontent over tariffs, recognizing that they also could suffer. Rex Stoltz from Napa Valley Vintners underscores interdependence in the wine trade; expensive corks from Portugal and oak barrels from France are integral to California's production. The implication of trade wars has already caused severe reductions in exports to vital markets like Canada for American wines.
Overall, the conversation surrounding these tariffs highlights a complicated net of international trade relationships in the wine industry. As both French and American winemakers call for a more balanced trade environment, the future of Burgundy wine exports hangs in the balance.
