In the heart of France’s wine country, along with areas in Italy and Spain, a number looms large: 200%. This figure represents the tariff that former U.S. President Donald Trump threatened to impose on European wine, champagne, and other spirits. The proposed tariff was in response to the European Union’s decision to enact retaliatory tariffs on select U.S. products. This situation could spell significant challenges for European wine producers, as smaller wineries in particular may find it difficult to absorb the increased costs.
David Levasseur, a third-generation wine producer in Champagne, France, expressed his concerns. “This is big trouble for us,” he shared, holding a glass of his local produce. Levasseur fears that a 200% tariff on his exports to the U.S. would bring his business to a standstill. “A 200% tariff could be a real disaster,” he added.
The U.S. ranks among the top destinations for wine exports from Italy, France, and Spain. Trump’s threat followed the EU’s announcement of a 50% duty on American whiskey, set to be enforced from April 1. This duty was a countermeasure to Trump’s previous tariffs on foreign steel and aluminum.
Gabriel Picard, leading the French Federation of Exporters of Wines and Spirits, mentioned that the impact would be a “hammer blow” for France’s industry, which annually sends €4 billion worth of wines and spirits to the U.S. “A 200% duty would effectively wipe out our market there,” he lamented. While acknowledging the European leaders’ motives, Picard noted the necessity of being strategic in addressing Trump’s aggressive trade policies.
In Italy, there’s a push for diplomatic solutions as the nation’s wine industry, particularly at upscale venues, could bear heavy losses. The U.S. has been Italy’s largest market with a noteworthy growth of nearly 7% in wine export value over the previous year. “We must maintain solidarity in negotiations,” remarked Piero Mastroberardino from Federvini. The potential spike in prices due to tariffs would elevate his high-profile wines to prohibitive price levels.
Similarly, Spanish wine producers are alarmed at the looming tariff threat. “This doesn’t seem logical, and we hope it remains an empty threat,” expressed Begoña Olavarría of the Interprofessional Wine Organization of Spain. Spanish wine exports saw a 7% increase to the U.S. last year despite the trade tension.
The Spanish Cava sector, particularly, is on edge. The U.S. stands as the second most significant market for this sparkling wine. For Mireia Pujol-Busquets of Alta Alella Bodega, a 200% tariff could erase years of efforts to secure their U.S. market presence. Her operation in Cava, just outside Barcelona, risks losing substantial business. “It seems irrational to consider enduring such a tariff,” she expressed, highlighting the desperate situation for her business of 40 employees.
This news comes as a stark reminder of the fragile balance in international trade, particularly in industries like winemaking, where tariffs can deeply affect traditional markets and disrupt longstanding trade relationships.