French wine exports are at risk as Donald Trump threatens to increase tariffs, putting pressure on Burgundy producers.
**Trump's Tariffs Raise Concerns For French Winemakers**
**Trump's Tariffs Raise Concerns For French Winemakers**
In Burgundy, winemakers fear that proposed tariffs by Trump could disrupt their lucrative US market.
Burgundy, the prestigious wine region in eastern France known for its high-quality wines, is facing a looming challenge from potential tariffs imposed by former President Donald Trump. With the US as its largest export market, the imposition of tariffs threatens to make European wines cost-prohibitive for American consumers.
In the picturesque village of Morey-Saint-Denis, vineyard worker Élodie Bonet is focused on nurturing the vines, ensuring they flourish for the upcoming grape harvest. The region’s signature wines, such as Nuits-Saint-Georges and Clos-Vougeot, are among the prized offerings being crafted by winemakers like Cécile Tremblay, who notably sells about 10% of her production to the US market.
Trump's tariffs began with a potential 200% increase on European alcohol, which he initially scaled back to 10% on April 5, with hints of escalating back to 20% as trade negotiations unfold. Tremblay expresses her worries cautiously, reflecting the sentiment of many winemakers, who feel the need to tread carefully amidst these unstable conditions.
François Labet, president of the Burgundy Wine Board, underscores the significance of the US market, noting it accounts for approximately a quarter of Burgundy’s wine exports. He observed that while global exports of French wines declined, Burgundy wine sales to the US noticeably rose by 16% in recent years, translating to an impressive €370 million ($415 million) in revenue.
The wine landscape in Burgundy is renowned predominantly for its pinot noir reds and increasingly popular chardonnay whites, such as Chablis. Even in the face of declining red wine consumption worldwide, the demand for white and sparkling wines from the region remains strong, indicating a market shift towards lighter varieties.
Labet recalls a previous experience when Trump levied a 25% import tax, resulting in a drastic 50% drop in Burgundy’s exports to the US. He predicts that any increase in the current 10% duty will lead to a catastrophic repeat of that scenario, throwing the market back to a near-stalemate as it was in 2019.
Jerome Bauer, president of the French National Wines and Spirits Confederation, voices grave concerns about the current trade environment, stating that when Trump previously raised tariffs, France experienced a swift loss of $600 million. His solution lies in seeking a free trade approach, favoring no tariffs at all.
In an unexpected turn, even American vintners are expressing discontent over these tariffs. Rex Stoltz, vice-president at Napa Valley Vintners, highlights the interconnectedness of the global wine market, detailing that American wineries source corks and barrels internationally. Tariffs not only threaten their imports but have also exacerbated trade issues with Canadian markets, further complicating the landscape for US wine producers.
The projected effects of these tariffs will not only hurt French winemakers but could disrupt the entire global wine industry, pushing producers on both sides to advocate for a balanced trade approach that benefits everyone involved.
In the picturesque village of Morey-Saint-Denis, vineyard worker Élodie Bonet is focused on nurturing the vines, ensuring they flourish for the upcoming grape harvest. The region’s signature wines, such as Nuits-Saint-Georges and Clos-Vougeot, are among the prized offerings being crafted by winemakers like Cécile Tremblay, who notably sells about 10% of her production to the US market.
Trump's tariffs began with a potential 200% increase on European alcohol, which he initially scaled back to 10% on April 5, with hints of escalating back to 20% as trade negotiations unfold. Tremblay expresses her worries cautiously, reflecting the sentiment of many winemakers, who feel the need to tread carefully amidst these unstable conditions.
François Labet, president of the Burgundy Wine Board, underscores the significance of the US market, noting it accounts for approximately a quarter of Burgundy’s wine exports. He observed that while global exports of French wines declined, Burgundy wine sales to the US noticeably rose by 16% in recent years, translating to an impressive €370 million ($415 million) in revenue.
The wine landscape in Burgundy is renowned predominantly for its pinot noir reds and increasingly popular chardonnay whites, such as Chablis. Even in the face of declining red wine consumption worldwide, the demand for white and sparkling wines from the region remains strong, indicating a market shift towards lighter varieties.
Labet recalls a previous experience when Trump levied a 25% import tax, resulting in a drastic 50% drop in Burgundy’s exports to the US. He predicts that any increase in the current 10% duty will lead to a catastrophic repeat of that scenario, throwing the market back to a near-stalemate as it was in 2019.
Jerome Bauer, president of the French National Wines and Spirits Confederation, voices grave concerns about the current trade environment, stating that when Trump previously raised tariffs, France experienced a swift loss of $600 million. His solution lies in seeking a free trade approach, favoring no tariffs at all.
In an unexpected turn, even American vintners are expressing discontent over these tariffs. Rex Stoltz, vice-president at Napa Valley Vintners, highlights the interconnectedness of the global wine market, detailing that American wineries source corks and barrels internationally. Tariffs not only threaten their imports but have also exacerbated trade issues with Canadian markets, further complicating the landscape for US wine producers.
The projected effects of these tariffs will not only hurt French winemakers but could disrupt the entire global wine industry, pushing producers on both sides to advocate for a balanced trade approach that benefits everyone involved.
