Business Daily
Tariffs and terroir
May 11, 2025
François Labbé, President of the Burgundy Wine Interprofessional Office, represents 3,500 winemakers in the prestigious Burgundy region. He shares insights on the $400 million wine export to the U.S. and the looming threat of import tariffs. Discussions cover the unique terroir of Burgundian wines, the challenges local vintners face, and how American competitors in Oregon and California view the tariff situation. Labbé also emphasizes the resilience of Burgundy's winemakers amidst market fluctuations and the intricate relationship of the wine trade.
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Quick takeaways
- The imposition of tariffs by the U.S. threatens the profitability of Burgundy's winemakers, critical for their export market dynamics.
- U.S. wine producers are also affected by tariffs as they rely on international trade for essential materials like oak barrels and corks.
Deep dives
Impact of Trump Tariffs on French Wine Industry
The imposition of tariffs by the U.S. government under President Trump has raised significant concerns for the French wine industry, particularly in Burgundy. Initial threats included a 200% markup on European alcohol, which later transitioned to a 20% tariff that was reduced to 10% following backlash. Winemakers like Cécile Tremblay express fears of declining sales, with the U.S. being a crucial market for their exports. The market repercussions are exacerbated by prior experiences, where a 25% tariff drastically reduced sales, showcasing the vulnerabilities of French winemakers reliant on American consumers.
