French Winemakers Sound Alarm Over Impact of Trump’s New Tariffs

As U.S. tariffs on European goods escalate under Donald Trump’s latest trade policy, winemakers in France’s iconic Burgundy region are raising concerns over their future in the American market – one that has long been central to their global sales.

At Domaine Cécile Tremblay in Morey-Saint-Denis, vineyard workers are preparing the vines for the season, but the mood is subdued. While tending to her vines, acclaimed winemaker Cécile Tremblay expressed concern over the uncertainty triggered by the new tariffs. “For the United States, it’s about 10% of my production. That’s significant for me,” she said cautiously.

Trump’s administration has imposed a 10% tariff on European Union goods, down from a previously threatened 20%, with a warning that the rate could be hiked back up – or even doubled to 50% – depending on the outcome of ongoing trade negotiations.

Though French winemakers have been publicly reserved, their representatives have begun to speak out. François Labet, president of the Burgundy Wine Board, confirmed that the U.S. remains the region’s top export destination, both in terms of volume and value. Last year alone, Burgundy shipped over 20 million bottles to the U.S., generating €370 million in revenue – a 26% increase from the previous year.

Labet warned that rising tariffs could quickly undo that progress. “If the U.S. increases the tariff to 20% in July, we will return to a situation similar to 2019, when sales nearly collapsed,” he said. He recalled a previous episode during Trump’s first term, when a 25% tariff slashed Burgundy exports to the U.S. by half in just 18 months.

The Burgundy region, best known for its delicate pinot noir reds and crisp chardonnays, has long enjoyed a strong market in the U.S. White wines, such as Chablis, and even local sparkling varieties like Crémant de Bourgogne have grown in popularity. But the escalating trade conflict threatens to squeeze all segments of the market.

Jerome Bauer, who heads the French National Wines and Spirits Confederation, estimates that France lost roughly $600 million during the last major tariff spike. This time, the impact could be even broader, as more categories of wine – including Champagne and stronger vintages – are now in the firing line.

Surprisingly, American winemakers are also voicing concern. Rex Stoltz, vice president of Napa Valley Vintners, which represents more than 500 wineries in California, described the tariffs as damaging to the global wine trade. “This looks horrible from our perspective. Wine is international. Our barrels come from France, our corks from Portugal. These costs will rise, and so will prices for consumers,” he explained.

He also highlighted the fallout from retaliatory tariffs in Canada. “Canada has removed all American alcoholic beverages from their store shelves. There are currently zero Napa Valley wines available there,” Stoltz said.

With both French and American producers calling for restraint, industry leaders on both sides of the Atlantic are urging a return to open trade. Whether that will happen in time to prevent lasting damage remains to be seen.