Burgundy’s Winemakers Brace for Impact of Trump’s Tariffs on U.S. Exports

With the looming threat of increased tariffs on European wines under Trump's administration, Burgundy's winemakers express concern over potential losses, a sentiment shared even among American competitors.

Winemakers in the Burgundy region of France, famed for its high-quality wines, are currently grappling with the repercussions of U.S. tariffs implemented by former President Donald Trump. As the largest export market for Burgundy wines, the United States is at the center of these concerns.

Under the cloudy spring sky, vineyard worker Élodie Bonet diligently prunes vine shoots, ensuring that the grape plants allocate energy to their most fruitful parts. Meanwhile, Cécile Tremblay, a local winemaker, reflects on the significance of the U.S. market to her business, where nearly 10% of her production is destined for American consumers.

Following a series of changes, Trump's initial proposal for a 200% tariff on European wines was reduced to 10%, with a warning that it could escalate to 20% in July. This uncertainty has heightened anxiety among winemakers, with Tremblay voicing the apprehension felt across the board but refraining from elaborating further.

François Labet, president of the Burgundy Wine Board, confirms the U.S.'s critical role by acknowledging that it comprises about a quarter of the region’s wine exports. Prior to Trump's election, the trade environment was favorable, with Burgundy's exports to the U.S. increasing significantly in volume and revenue.

Despite a wider decline in global wine exports, demand for Burgundy wines—particularly those made from pinot noir and chardonnay—remains strong. However, Labet recalls a past experience when a 25% tariff caused devastating reductions in U.S. exports, resulting in a nearly 50% loss in sales.

With Trump's renewed tariff threats, Labet is apprehensive, predicting that if tariffs increase as anticipated, they would revert to a “nearly halted” sales situation reminiscent of previous years. Industry leaders, including Jerome Bauer from the French National Wines and Spirits Confederation, highlight the immense financial toll potential tariffs could impose.

In an unexpected twist, American winemakers, including those from California's Napa Valley, express concern over the impending tariffs. Rex Stoltz from Napa Valley Vintners emphasizes that wine is an international product, relied upon by various global suppliers.

The U.S.'s retaliatory tariffs against Canada, comprising a significant market for California wines, further complicate the picture, leading Stoltz to advocate for a level playing field in trade. The stakes for Burgundy, alongside the broader international wine community, couldn't be higher as the industry faces a critical juncture.