Tariff Troubles: French Winemakers Face Challenges from Trump Policies

As tensions rise over tariffs introduced by former President Trump, winemakers in France's Burgundy region are grappling with the repercussions on their exports, particularly to the US, their biggest market. Vineyard owners fear a significant dip in sales and are advocating for free trade to shield their industry from further economic strain.

Crouched down in the cool dampness of the vineyard, Élodie Bonet meticulously trims vine shoots, hoping to nurture the best quality grapes. Burgundy, celebrated globally for its exquisite wines, faces a significant challenge as the US, its largest market, grapples with the ramifications of Donald Trump’s tariffs. At the Domaine Cecile Tremblay winery in Morey-Saint-Denis, winemaker Cécile Tremblay shares her concerns about the market dynamics. Tremblay exports around 10% of her wine to the US, making it a vital source of income. The situation worsened when Trump threatened to impose a staggering 200% tax on European alcohol imports, temporarily settling on a 10% levy that could rise again.

François Labet, president of the Burgundy Wine Board representing over 3,500 winemakers, echoes Tremblay’s worries, explaining that the American market accounted for a quarter of Burgundy wine exports last year. Despite a global decline in French wine exports, Burgundy wines saw a 16% increase in volume shipped to the US, a trend now disrupted by new tariffs. Burgundy wines, especially the famed pinot noir reds, have become highly sought after, yet rising costs may disrupt this success.

In the previous term, Trump implemented a 25% tariff affecting European wines, leading to a 50% drop in Burgundy's exports to the US. The current 10% tariff, should it increase to 20%, could mirror the nearly halted market conditions experienced in 2019. Winemakers and distributors are anxious to avoid significant losses as margins narrow.

Jerome Bauer, president of the French National Wines and Spirits Confederation, warns of potential losses in the hundreds of millions if tariffs escalate. In a surprising turn, even American vintners like Rex Stoltz from Napa Valley Vintners oppose the tariffs, voicing that the move could lead to rising costs for American wines and disrupt exports to Canada—a critical market for many US wineries.

Both sides of the Atlantic seek a resolution to maintain their competitive edge in the international wine market, underscoring the interconnected nature of global trade and the need for equitable policies that benefit all wine producers. With the future uncertain, Burgundy's winemakers remain hopeful for a return to free trade, which could preserve their cherished craft and beloved wines.