Crouched in the damp earth beneath a grey Spring sky, vineyard worker Élodie Bonet meticulously prunes unwanted vine shoots, focusing on maximizing grape yields. In Morey-Saint-Denis, a small village in the esteemed Burgundy region of France, winemaker Cécile Tremblay is also feeling the strain of recent international trade tensions as she eyes the US market, her largest export destination.
Tremblay, whose estate produces several prized red wines, describes her apprehension surrounding the repercussions of tariffs imposed by former President Donald Trump. Initially threatening a staggering 200% increase on alcohol imports from Europe, Trump modified this to a 20% tariff on EU goods as of April 5, later negotiating it down to 10% with further threats to raise it again, potentially to 50%. "Yes, sure, I'm worried," Tremblay admits, although she remains cautious about voicing more concerns due to the volatile climate.
François Labet, the president of the Burgundy Wine Board, echoes Tremblay's fears. "The US is the largest export market for the whole region," he states, confirming that American interest in Burgundy wines surged prior to the tariffs; exports to the US rose 16% in a year, with revenues peaking at approximately €370 million ($415 million) in 2024.
Burgundy's reputation is largely built on its red wines, predominantly produced from the acclaimed pinot noir grape. Even with its growing sparkling wine segment and exceptional chardonnays, Labet warns that a significant hike in tariffs could revert the market back to pre-2019 levels when sales plummeted.
Meanwhile, Jerome Bauer, president of the French National Wines and Spirits Confederation, emphasizes the steep financial toll previous tariffs have taken, amounting to a loss of $600 million in a brief 18-month period. Labet predicts that should the tariffs increase again, French wine producers and US retailers will part ways in absorbing the new costs, a burden that could hamper sales.
Interestingly, even American winemakers, particularly in regions like Napa Valley, are apprehensive about the ripple effects of the trade wars. Rex Stoltz of Napa Valley Vintners highlights this shared concern, stating, "We don’t like it one bit ... wine is an international product." Current trade restrictions negatively impact not just European imports but American exports to Canada, which Stoltz cites as vital for California wineries.
The evolving narrative of Trump’s tariffs casts a long shadow over one of France's classic industries, leaving winemakers and distributors alike gripping their glasses tightly as they await the upcoming trade negotiations.
