French winemakers are expressing serious concerns about US President Donald Trump’s 20% tariffs, which could hit the industry hard, for which the US is a key export market, ABC News reports.
French President Emmanuel Macron has already warned of “massive” consequences during a meeting with representatives of the most affected sectors, including wine and spirits.
The Bourgogne Wine Board said the industry would be “heavily affected” as the US is the leading export market for Burgundy wines.
“While this new measure will affect exports, potentially costing Bourgogne wines up to 100 million euros, it will not bring trade to a sudden halt, as would have been the case with higher tariffs,” the industry association said.
The the Comité Européen des Entreprises Vins (European Committee of Wine Businesses), or CEEV president, Marzia Varvaglione, added that there is currently no alternative wine market that could compensate for the loss of the American market. At the same time, winemakers say the situation could have been worse.
“This is bad news. But it could be worse. I was really stressed with the possibility of having this 200% tariff,” said Vincent Dampt, owner of a winery in Chablis (Burgundy region).
Dampt exports about 30% of its production to the United States – about 25,000 bottles a year. To maintain a presence in the American market, it will have to lower prices and reduce profits, which is “not easy to do”, especially after losing about 50% of its harvest last year due to weather conditions.
According to the European Committee of Winemakers, the United States remained the largest export market for EU wines last year, with a volume of EUR 4.88 billion, representing 28% of the total value of EU wine exports.
As you know, US President Donald Trump has officially launched a tariff, or “trade” war, against all countries, introducing duties ranging from 10% to 50% on imports, depending on the country of origin.
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