In the prestigious Burgundy region of eastern France, known for its high-quality wines, the impact of Donald Trump’s recent tariffs is causing growing concern among local winemakers. With the US as their largest export market, Burgundy's vineyards are now grappling with the potential to be priced out of this lucrative segment.
At Domaine Cecile Tremblay in Morey-Saint-Denis, winemaker Cécile Tremblay is feeling the pressure. She notes that around 10% of her production heads to the US, which she describes as a significant share for her business. Trump's tariffs began with a threatening 200% markup on alcohol from Europe in April, later adjusted to a 10% rate, with further increases looming that could reach as high as 50%. Tremblay expressed worry, but opted to remain cautious in her remarks.
François Labet, president of the Burgundy Wine Board, underscores the severity of the situation. The US market represents a quarter of Burgundy’s exports, with sales having skyrocketed last year, defying overall trends in French wine exports, which declined by 4%. Amid this trade upheaval, winemakers, while enjoying strong sales in the US, are burdened with uncertainty.
The white wines, primarily made from Chardonnay, and the celebrated Pinots of Burgundy are in high demand, but winemakers are increasingly concerned about the effect of imposed tariffs on their export viability. Labet recalls how a previous 25% tariff initiated by Trump drastically decreased exports to the US.
French wine industry leaders anticipate that the current tariff situation could prompt a repeat of earlier challenges, dampening market access if higher tariffs are reinstated. The potential for significant financial losses looms large, and industry advocates are championing free trade as a solution.
American wine producers, such as those in Napa Valley, surprisingly side with their French counterparts, expressing dismay over the trade implications. They argue that tariffs harm the overall wine ecosystem and drive up costs for all involved, including much-needed imports such as corks from Portugal and barrels from France.
With the future of the cross-continental wine trade hanging in the balance, winemakers on both sides are calling for an end to the tariff war, hoping for mutual success in an increasingly challenging and competitive global market.