Burgundy Winemakers Face Uncertainty Amid Trump’s Tariffs

With Trump's tariffs hanging over the Burgundy wine market, winemakers fear detrimental impacts on their U.S. sales as trade tensions escalate.

Burgundy, the renowned French wine region, now finds itself in turbulent waters as U.S. tariffs imposed by former President Donald Trump create indeterminate prospects for its winemakers. Known for its exceptional pinot noir and chardonnay, Burgundy has long benefited from a robust market in the United States, its largest export destination.

Amid the spring chill, vineyard worker Élodie Bonet meticulously trims vines to enhance grape production. In the nearby winery, owner Cécile Tremblay passionately describes her wines, but expresses concern over a potential 20% tariff set to affect her U.S. exports. “For the United States, it’s around 10% of my production; it’s significant for me!” she highlights.

After initially threatening a staggering 200% mark-up, Trump narrowed the tariff to 10% on April 5, 2023. Yet, the situation remains precarious with warnings of further increases. Despite the anxiety, Tremblay and her peers refrain from vocal criticisms, wary of worsening their standing.

François Labet, representing 3,500 Burgundy winemakers, underscores the gravity of the situation, noting a previous 25% tariff had dramatically slashed exports by 50%. While global exports of French wine took a hit last year, sales of Burgundy wines to the U.S. notably surged by 16%, raking in €370 million.

With French red wines increasingly sought after, Labet believes the U.S. market could return to a near standstill should tariffs rise again. Economists warn that Trump's actions could cost the region $600 million if tariffs spiral out of control, potentially resulting in fewer sales and erratic pricing.

Farmers are not the only ones feeling the strain. Rivals in California echo the concern, highlighting that imports are crucial for their operations, from cork production in Portugal to barrels from France. As U.S. trade tensions escalate, winemakers on both sides of the Atlantic yearn for a level playing field, fearing their work may be swept away in a tide of spiraling tariffs.