Trump's Tariffs Pile Pressure on French Winemakers as US Market at Risk

Winemakers in Burgundy, France, are grappling with the impact of Donald Trump's tariffs on European wine, which threaten to disrupt their significant export market in the US. As trade negotiations unfold, producers express anxiety over potential hikes in duties, fearing a repeat of past declines in sales.

In the renowned Burgundy region of France, winemakers face an unsettling future amidst the ongoing trade tensions spurred by Donald Trump's tariffs. The United States, a vital market responsible for about a quarter of Burgundy’s wine exports, is becoming increasingly difficult to navigate due to changing tariffs.

At the heart of Burgundy's wine industry, vineyard worker Élodie Bonet expertly prunes vine shoots to ensure a fruitful grape harvest. Nearby, Cécile Tremblay, owner of Domaine Cecile Tremblay, shares her concerns about the rising costs tied to US tariffs on European wine imports. "The US market accounts for about 10% of our production, which is significant for my business," she notes.

In early April, Trump imposed a 20% tariff on nearly all European products, subsequently lowering it to 10% in a bid to foster trade negotiations. However, he has hinted at potentially increasing it back to 20% as soon as July, raising alarm among producers. Tremblay acknowledges, "Yes, sure," when asked about her worries, but remains cautious not to elaborate, reflecting the industry's unease.

François Labet, president of the Burgundy Wine Board, states, "The US is the largest export market for the whole region," emphasizing how crucial it is to their economic stability. In recent years, Burgundy wines enjoyed a 16% increase in export volume to the US, reaching €370 million ($415 million) in revenue—a trend that could swiftly change should tariffs rise.

Burgundy is famed for its reds produced mainly from pinot noir and whites from chardonnay. Its international reputation has been buoyed by the gradual rise in demand for these wines, contrasting with widespread declines in red wine consumption globally.

Echoing the frustrations of his colleagues, Labet recalls the sharp decline in sales during Trump's previous tariffs, which saw a 50% drop in exports over an 18-month period. He warns that if tariffs escalate again, "we will go back to 2019, where the market was almost stopped."

The impact extends beyond France. Jerome Bauer, president of the French National Wines and Spirits Confederation, indicates that the previous 25% duties cost France approximately $600 million. He insists on a no-tariff solution as essential for preserving valuable trade networks.

Even in the California wine region, fellow winemakers face the repercussions of tariffs, with Rex Stoltz from Napa Valley expressing concern about rising production costs and the blockage of US wines in the Canadian market. "We just want to compete on an even playing field," he concludes, underlining the collective impact of trade impediments on the global wine industry.

As uncertainty looms over the future of trade relationships, Burgundy's winemakers hope for a resolution that allows them to maintain their foothold in the American market, essential for their livelihoods and the heritage of their craft.