In the renowned Burgundy wine region of France, winemakers are feeling the pressure from President Donald Trump's tariffs, which could jeopardize their exports to the United States—their largest market. While vineyard worker Élodie Bonet meticulously prunes the vines, winemaker Cécile Tremblay expresses her concern over the tariffs, which recently increased to 10% on most European goods. Trump's proposed further escalation to 50% has left many in the wine industry anxious.
Tremblay, who exports 10% of her production to the U.S., acknowledges the unsettling nature of the situation without delving deeper into her worries. Nearby, François Labet, head of the Burgundy Wine Board, emphasizes the significance of the American market, noting that it accounts for approximately 25% of Burgundy's wine exports. Despite an overall 4% drop in global French wine exports last year, Burgundy's sales to the U.S. surged 16%, generating €370 million in revenue.
Burgundy winemakers predominantly produce red wine from the coveted pinot noir grape, leading to a strong international reputation. In recent years, however, their struggle against tariffs has overshadowed their success stories. Labet recalls how a previous 25% tariff imposed by Trump significantly hindered U.S. exports for 18 months, resulting in a staggering 50% decline in sales. With the current 10% tariff in play, he fears market conditions could worsen if tariffs increase again, returning to a near standstill for Burgundy wines.
Jerome Bauer, head of the French National Wines and Spirits Confederation, explains the financial consequences of Trump's tariff policies, highlighting the necessity for a free-trade approach. Surprisingly, some American winemakers also oppose the tariffs. Rex Stoltz of Napa Valley Vintners points out how these trade wars impact both sides. The ongoing restrictions have led to a halt in sales of American wines in Canada, a critical market for U.S. producers.
Both French and American winemakers agree that exceptional wines require cooperation and a level playing field to thrive, advocating for an end to trade barriers that disrupt their vibrant industry.
