Burgundy winemakers, like Cécile Tremblay and François Labet, express deep concern over Trump's tariffs, which threaten their access to the US market. While export sales had soared prior to these tariffs, uncertainty looms as potential increases could lead to disastrous drops in revenue.
Trump's Tariffs Squeeze Burgundy Winemakers as US Market Drought Looms
Trump's Tariffs Squeeze Burgundy Winemakers as US Market Drought Looms
Burgundy's wine exports to the US, crucial for many French winemakers, face significant challenges due to Donald Trump's fluctuating tariffs.
In Burgundy, France's famed wine region, vintners are grappling with the impact of President Donald Trump's escalating tariffs, which have jeopardized their largest export market—the United States. With vineyards nestled in the picturesque village of Morey-Saint-Denis, the urgent work of vineyard employees like Élodie Bonet illustrates the laborious dedication that goes into crafting celebrated wines.
Upon visiting winemaker Cécile Tremblay, who exports roughly 10% of her production to the US under the name Domaine Cecile Tremblay, it's clear that the stakes are high. The recent imposition of a 20% tariff on all European Union goods followed by a threat to increase it to 50% has heightened her anxiety. Tremblay echoed the sentiment of many winemakers: "Yes, sure," regarding her concerns about how these tariffs could alter their business landscape.
François Labet, president of the Burgundy Wine Board, emphasized the US's significance as the region's top export market with wines valued at €370 million ($415 million) in revenue last year alone. The booming demand for Burgundy wines—especially those made from the renowned pinot noir grape—was a bright spot last year, yet the possibility of punitive tariffs looms large.
Moreover, winemakers are cautious due to the volatile nature of international trade. The previous experience of a 25% tariff that lasted 18 months during Trump's initial term saw a disastrous 50% reduction in Burgundy's exports. With France's wine consumers shifting preferences toward lighter reds and sparkling wines, winemakers like Labet fear a regression to dire market conditions. "We will go back to the 2019 situation where the market was almost stopped," he warned, expressing concern over current and potential tariffs.
As discussions ensue about the future of the wine industry, even American winemakers from regions like Napa Valley, such as Rex Stoltz, are voicing alarm over the brewing trade wars. They have already witnessed significant disruptions in their own exports to Canada due to retaliatory tariffs. Stoltz lamented, “We just want to compete on an even playing field with our friends and neighbors all over the world."
In this environment of uncertainty, Burgundy's winemakers remain on high alert, hoping that dialogue and collaboration may lead to a resolution that restores the stability they need to continue thriving within the international wine market.
Upon visiting winemaker Cécile Tremblay, who exports roughly 10% of her production to the US under the name Domaine Cecile Tremblay, it's clear that the stakes are high. The recent imposition of a 20% tariff on all European Union goods followed by a threat to increase it to 50% has heightened her anxiety. Tremblay echoed the sentiment of many winemakers: "Yes, sure," regarding her concerns about how these tariffs could alter their business landscape.
François Labet, president of the Burgundy Wine Board, emphasized the US's significance as the region's top export market with wines valued at €370 million ($415 million) in revenue last year alone. The booming demand for Burgundy wines—especially those made from the renowned pinot noir grape—was a bright spot last year, yet the possibility of punitive tariffs looms large.
Moreover, winemakers are cautious due to the volatile nature of international trade. The previous experience of a 25% tariff that lasted 18 months during Trump's initial term saw a disastrous 50% reduction in Burgundy's exports. With France's wine consumers shifting preferences toward lighter reds and sparkling wines, winemakers like Labet fear a regression to dire market conditions. "We will go back to the 2019 situation where the market was almost stopped," he warned, expressing concern over current and potential tariffs.
As discussions ensue about the future of the wine industry, even American winemakers from regions like Napa Valley, such as Rex Stoltz, are voicing alarm over the brewing trade wars. They have already witnessed significant disruptions in their own exports to Canada due to retaliatory tariffs. Stoltz lamented, “We just want to compete on an even playing field with our friends and neighbors all over the world."
In this environment of uncertainty, Burgundy's winemakers remain on high alert, hoping that dialogue and collaboration may lead to a resolution that restores the stability they need to continue thriving within the international wine market.
