French Winemakers Face Challenges Amidst Trump's Tariffs

Burgundy's winemakers are grappling with the ramifications of U.S. tariffs imposed by Donald Trump, which have increased costs and could severely impact sales to their largest export market. With rising concerns about potential hikes in tariffs, the local wine industry is on edge, fearing a return to past export declines.

In the famed Burgundy region of eastern France, known for its exquisite wines, winemakers are increasingly worried about the impact of tariffs imposed by Donald Trump. The U.S. market, historically the largest for Burgundy wines, now presents a daunting challenge as the latest tariffs could push local producers out of the competitive American landscape.

Standing in the picturesque village of Morey-Saint-Denis, winemaker Cécile Tremblay shares her concerns as she prepares for this season's harvest. “For us, the U.S. accounts for around 10% of production, a significant amount for my business,” she acknowledges while surrounded by the charm of her cellar filled with rare vintages.

On April 5, Trump enacted a 20% tariff on nearly all European Union products, subsequently lowering it to 10% just days later, though he has hinted at raising tariffs again in July. Tremblay’s unease is palpable as she reflects on the uncertain climate for her wines.

François Labet, president of the Burgundy Wine Board, echoes these sentiments, emphasizing the importance of U.S. exports to the region. "The U.S. is our biggest market in volume and value," he states, noting a robust 16% sales increase from 2024. Yet, he worries that future increases could mirror the harsh realities of 2019, when many producers faced a staggering 50% drop in exports due to previous tariffs.

French Wines and Spirits Confederation president Jerome Bauer paints a stark portrait of the potential fallout, recalling a rapid loss of $600 million during Trump’s prior import tariff initiatives. “This time, the stakes are higher since the tariffs could cover more wine categories,” he explains, advocating for free trade and arguing that trade wars affect both sides negatively.

Interestingly, the American wine industry shares the apprehensions of its French counterparts. Napa Valley’s Rex Stoltz highlights the interconnectedness of the global wine market. “Our corks come from Portugal, and the oak barrels from France,” he emphasizes, pointing out that tariffs increase the costs for U.S. producers while driving Canadian markets to boycott American wines.

As the Burgundy vineyards prepare for what could be a fragile season, the call for cooperation and clear communication among wine producers from both sides remains essential to navigate the tumultuous waters of international trade.