Spring rain falls gently on the vineyards of Burgundy, France, as winegrowers carry out their seasonal work. Élodie Bonet trims vine shoots carefully, ensuring the plants grow strong grapes for the harvest. Not far away, winemaker Cécile Tremblay works in her family’s cellar, where barrels of red wine rest quietly. Some of her best bottles are shipped to the United States, which makes up about 10% of her sales.
That market is now under threat. On April 5, former US President Donald Trump introduced a 20% tariff on European Union products, including wine. The tariff was later reduced to 10%, but he warned that it could rise again, possibly to 50% by the summer. This development has caused concern among French winemakers who rely heavily on American buyers.
Burgundy’s wine board, which represents 3,500 producers, says the United States is their biggest export market by volume and value. Last year, while global wine exports dropped, sales from Burgundy to the US increased. Shipments rose by 16% in volume and 26% in value, reaching 370 million euros. Burgundy wines are highly valued in the US and have benefited from growing demand.
The region is known for its red wines made from pinot noir grapes, but about two-thirds of production is actually white wine, primarily made from chardonnay. These white wines, including Chablis, continue to perform well in the US market. Burgundy also produces Crémant de Bourgogne, a sparkling wine that is gaining popularity, along with limited amounts of rosé.
Changing tastes in wine also help Burgundy’s case. Consumers are moving away from heavy red wines with high alcohol content and strong oak flavors. Instead, they prefer lighter reds, white wines, and sparkling varieties. Burgundy’s cooler climate results in lower sugar levels and less alcohol in the wine, aligning with current trends.
Many winemakers remember what happened in 2019 during another trade dispute between the US and the EU. A 25% tariff was placed on European wines as part of a conflict over aircraft subsidies. During that period, Burgundy’s exports to the US dropped by half. This past experience raises fears that higher tariffs could cause the same damage again.
Although the current 10% tariff is being managed by both producers and US importers, any increase could cause serious problems. The wine industry operates on narrow margins, and sudden price hikes can push buyers to look elsewhere. This could result in the loss of long-established customers.
The French National Wines and Spirits Confederation points out that last time tariffs were imposed, the country lost over 600 million dollars in wine sales. Unlike the previous dispute, this round of tariffs includes every category of wine. Producers are asking for fair trade policies, noting that the EU has a large trade surplus with the US in wine and spirits.
Across the Atlantic in California’s Napa Valley, American winemakers are also affected. They depend on materials like corks from Portugal and barrels from France. As tariffs increase, their production costs go up. In response to US trade policies, countries like Canada have taken American wines off their store shelves. This affects US producers’ exports and revenue.
The impact of trade decisions is being felt far from the negotiating tables. In the vineyards of Burgundy and Napa Valley, producers are dealing with the consequences. With more tariffs possible and markets tightening, the global wine industry faces a period of uncertainty.
Wine producers on both sides of the Atlantic are hoping for stability. They want open markets and predictable rules that let them focus on what they do best—making quality wine for the world to enjoy.
