Article text:
In the renowned wine region of Burgundy, France, winemakers are grappling with the implications of tariffs imposed by former President Donald Trump on European goods, specifically targeting their prime export market, the United States. Known for its exceptional red wines, Burgundy could find itself in a precarious position as prices rise due to these tariffs.
Élodie Bonet, a vineyard worker, describes her meticulous pruning process while preparing the vines for the upcoming season. Just a short distance away, Cécile Tremblay, the owner and winemaker at Domaine Cecile Tremblay, shares that approximately 10% of her production is sent to the U.S., representing a significant portion of her sales. Recently, Trump's tariffs increased tensions, initially threatening a steep 200% mark-up, followed by a reduction to 10%. However, further increases loom ominously in the absence of favorable trade negotiations.
While Tremblay acknowledges the stress surrounding this issue, she refrains from diving deeper into her concerns, reflecting the anxiety among French winemakers. François Labet, president of the Burgundy Wine Board, is more vocal, stating that the U.S. stands as the region's largest export market, both in volume and value. Despite a 4% drop in global wine exports from France, the sales of Burgundy wines to the U.S. surged by 16% in 2024, translating to revenues up 26.2% compared to the previous year.
Burgundy is celebrated primarily for its exquisite pinot noir wines, while the region also boasts esteemed white wines, primarily made from chardonnay. Interestingly, as consumer preferences shift away from heavier reds, Burgundy's lighter wines are gaining traction among enthusiasts.
Labet recalls the previous tariff experience that saw exports to the U.S. drop by around 50%, creating lasting damage to the industry. He predicts an unfavorable split of tariff costs between French producers and American merchants if the 10% tariff persists. Should the tariff rise to 20%, a repeat of 2019's near-market collapse seems inevitable.
The stakes seem even higher for the entire French wine industry, with Jerome Bauer, president of the French National Wines and Spirits Confederation, estimating a loss of $600 million due to prior tariffs. His call for free trade reflects concerns over an equilibrium in trade, especially against the backdrop of Europe's significant trade surplus with the U.S. regarding wines.
Interestingly, American winemakers are also feeling the pinch. Rex Stoltz from Napa Valley Vintners emphasizes their desire for fair competition, lamenting the collateral damage trade wars generate—particularly highlighting a void of Napa Valley wines in Canada, a crucial market now facing a boycott of American products.
The unfolding story of tariffs and wine speaks to the interconnected nature of global trade and its unpredictable consequences, leaving both French and American vintners at a crossroads, hoping for resolution and stability.
In the renowned wine region of Burgundy, France, winemakers are grappling with the implications of tariffs imposed by former President Donald Trump on European goods, specifically targeting their prime export market, the United States. Known for its exceptional red wines, Burgundy could find itself in a precarious position as prices rise due to these tariffs.
Élodie Bonet, a vineyard worker, describes her meticulous pruning process while preparing the vines for the upcoming season. Just a short distance away, Cécile Tremblay, the owner and winemaker at Domaine Cecile Tremblay, shares that approximately 10% of her production is sent to the U.S., representing a significant portion of her sales. Recently, Trump's tariffs increased tensions, initially threatening a steep 200% mark-up, followed by a reduction to 10%. However, further increases loom ominously in the absence of favorable trade negotiations.
While Tremblay acknowledges the stress surrounding this issue, she refrains from diving deeper into her concerns, reflecting the anxiety among French winemakers. François Labet, president of the Burgundy Wine Board, is more vocal, stating that the U.S. stands as the region's largest export market, both in volume and value. Despite a 4% drop in global wine exports from France, the sales of Burgundy wines to the U.S. surged by 16% in 2024, translating to revenues up 26.2% compared to the previous year.
Burgundy is celebrated primarily for its exquisite pinot noir wines, while the region also boasts esteemed white wines, primarily made from chardonnay. Interestingly, as consumer preferences shift away from heavier reds, Burgundy's lighter wines are gaining traction among enthusiasts.
Labet recalls the previous tariff experience that saw exports to the U.S. drop by around 50%, creating lasting damage to the industry. He predicts an unfavorable split of tariff costs between French producers and American merchants if the 10% tariff persists. Should the tariff rise to 20%, a repeat of 2019's near-market collapse seems inevitable.
The stakes seem even higher for the entire French wine industry, with Jerome Bauer, president of the French National Wines and Spirits Confederation, estimating a loss of $600 million due to prior tariffs. His call for free trade reflects concerns over an equilibrium in trade, especially against the backdrop of Europe's significant trade surplus with the U.S. regarding wines.
Interestingly, American winemakers are also feeling the pinch. Rex Stoltz from Napa Valley Vintners emphasizes their desire for fair competition, lamenting the collateral damage trade wars generate—particularly highlighting a void of Napa Valley wines in Canada, a crucial market now facing a boycott of American products.
The unfolding story of tariffs and wine speaks to the interconnected nature of global trade and its unpredictable consequences, leaving both French and American vintners at a crossroads, hoping for resolution and stability.
