Sun, 25 May 2025

Sun, 25 May 2025 Winemakers finding Trump's tariffs hard to swallow

Wine producers in both France and the US are unhappy at the US president's trade actions.

* Burgundy wine region in France is worried that Donald Trump's tariffs will price them out of the US market.
* The US is Burgundy's biggest export market, accounting for 10% of production and worth €370m in revenues last year.
* French winemakers are walking on eggshells due to fear of aggravating the situation, but some officials have spoken out about their concerns.
* Burgundy's reputation abroad is mainly for its red wines, made from pinot noir grape, but two-thirds of production is actually white wine made from chardonnay grape.
* The US market has been booming for Burgundy wines, with sales rising 16% in volume terms and 26.2% in revenue last year.
* French winemakers are worried about the impact of a potential 20% tariff on all EU exports to the US, which could "go back to the 2019 situation where the market was almost stopped".
* The president of the Burgundy Wine Board predicts that producers and merchants will split the cost of the new import duty between them.
* If Trump increases the tariff to 50%, it could lead to significant volatility in the coming weeks, ahead of a crucial G7 summit next month.
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