Under the muddy rows of vines in Burgundy, vineyard worker Élodie Bonet carefully trims unwanted shoots to ensure the grape vines direct their energy into fruitful growth. In the heart of this famed wine region, renowned for its exquisite wines, winemaker Cécile Tremblay shares her concerns about the impact of U.S. tariffs instituted by President Donald Trump.
Tremblay, who exports over half of her wine under Domaine Cecile Tremblay, reveals that roughly 10% of her production goes to the U.S. market. Trump's tariffs, which began with threats of a 200% mark-up on imported alcohol from Europe, have created an air of uncertainty since they were lowered to 10% after initial implementation. With potential hikes back to 20% or even 50% looming, the stakes are high.
Her neighbor, François Labet, president of the Burgundy Wine Board, confirms the U.S. is the largest export market for Burgundy wines, accounting for about a quarter of its total exports in terms of both volume and revenue. Until Trump's tariff policies, the market had been thriving, with sales rising notably. However, the current uncertainty is leading French winemakers to tread cautiously.
In 2024, red wine sales rose significantly in the U.S., and Burgundy's unique offerings – predominantly made from the well-loved pinot noir and chardonnay grapes – have built a strong international reputation. Yet, this growing market risks being stifled by shifting trade policies. Mr. Labet recalls the damaging 25% import tariff of Trump’s early presidency, which forced many winemakers to scale down operations due to steep drops in U.S. sales.
With ongoing trade tensions, experts like Jerome Bauer, president of the French National Wines and Spirits Confederation, highlight a serious threat to the French wine industry. In 2019, exporters faced losses of approximately $600 million due to tariffs that did not apply to wines under certain alcohol levels.
Even American winery representatives, such as Rex Stoltz of Napa Valley Vintners, express discontent with the trade wars, noting the interdependence within the wine industry for materials sourced globally. High tariffs are likely to inflate costs and limit a thriving business environment.
As winemakers around the world hope for restored trade relations and the elimination of tariffs, both European and American vintners remain cautiously optimistic about a resolution that enables fair competition and supports international trade in wine.
