Burgundy, one of France’s most esteemed wine regions, faces potential turmoil as U.S. tariffs on European wines threaten to impact its exports, with the United States being the largest market for these prestigious wines. Following recent trade tensions and tariff announcements by U.S. President Donald Trump, Burgundy winemakers are bracing for significant repercussions.
Trade Uncertainty and Tariffs
On April 5, 2025, President Trump announced a 20% tariff on many European Union products, which he later reduced to 10% but hinted could rise back to 20% by July depending on trade negotiations. There are also warnings of possible increased tariffs up to 50% on all goods from the EU, raising concerns among French winemakers about maintaining their foothold in the essential U.S. market.
Cécile Tremblay, owner of Domaine Cecile Tremblay in the village of Morey-Saint-Denis, exports about 10% of her wine production to the United States. “It’s really significant for us,” she said, expressing her unease at the precarious situation. “Yes, sure,” she added, when asked if she was worried, “as everybody is.” Tremblay, like many within the industry, is reluctant to voice her concerns too vocally for fear of aggravating the situation.
The Significance of The U.S. Market
The United States remains critical for Burgundy’s wine exports. François Labet, president of the Burgundy Wine Board, confirmed that the U.S. is the largest export market for the region, accounting for approximately a quarter of Burgundy’s wine exports, worth about €370 million ($415 million) in 2024. This year alone, exports to the U.S. soared 16%, outpacing French wine global exports, which fell by 4%.
Burgundy wines, particularly those made from the pinot noir grape, are distinguished and sought after globally. While red wines continue to hold relevance, Burgundy producers are witnessing a burgeoning demand for white wines, particularly chardonnays, and sparkling wines like Crémant de Bourgogne.
Impact of Past Tariffs
Historically, tariffs have significantly affected Burgundy’s wine sales to the United States. Labet recalled a previous 25% import tariff imposed during a trade dispute that led to a 50% drop in exports. He predicts that the current 10% tariff will result in both French winemakers and U.S. importers sharing the burden of the increased costs to maintain sales.
Should the tariffs increase to 20%, as threatened, Labet described a potential return to the market stagnation of 2019, warning that sales could “almost stop” entirely.
Concerns from Industry Leaders
Leading industry figures are advocating for free trade without tariffs as a solution to alleviate the burden imposed on producers. Jerome Bauer, president of the French National Wines and Spirits Confederation, shared similar sentiments, emphasizing the detrimental financial impact of past tariffs, which amounted to a loss of approximately $600 million during Trump’s previous administration. “The scale of the threat today is even greater,” Bauer noted, as current tariffs could encompass a broader range of products than in the past.
Unexpected Support from U.S. Competitors
Interestingly, American competitors in the wine industry, such as those in California’s Napa Valley, are also vocal against these tariffs. Rex Stults, vice-president of industry relations at Napa Valley Vintners, stated the tariffs do not benefit American producers either. “Wine is an international product,” he explained, highlighting the interconnected nature of sourcing materials like cork from Portugal and oak barrels from France.
He added that ongoing trade disputes, including tariffs introduced against Canada, are hampering U.S. wine exports. “Right now, there are zero Napa Valley wines on the shelves of stores in Canada,” Stults lamented.
Fazit
As French winemakers in Burgundy navigate a turbulent trade landscape marked by uncertainty over tariffs and export viability, the outcome of U.S. trade negotiations will play a crucial role in shaping the region’s lucrative wine market. With both producers and American counterparts seeking equitable trading conditions, the hope remains for a resolution that sustains the integrity and tradition of one of the world’s famed wine regions.
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