Burgundy, home of one of the world’s great vineyard nations, has economic problems. Those tariffs — first enacted by the United States under former President Donald Trump — are deeply distorting their new market. Now, in 2024, sales of Burgundy wines to the U.S. have already increased by 38 percent. Even with those challenges, the volume increased by a staggering 16%, amounting to an incredible 20.9 million bottles. Burgundy wines exported to the U.S. amounted to €370 million, nearly $415 million or £312 million. That’s a huge 26.2% bump from 2023! These numbers have helped make the U.S. the largest export market for Burgundy wines. Last year, it made up nearly a fourth of the region’s wine exports.
And winemakers, such as Cécile Tremblay of Domaine Cecile Tremblay are concerned about Trump’s tariffs. They are afraid these tariffs will have a devastating effect on their business. Tremblay sells over half of her wine abroad and is particularly anxious about rising costs that could follow any further increases in tariffs. As she noted, “For the United States, it’s around 10% of the production; it’s a big production for me!”
Burgundy’s wine production is mostly white, two-thirds of the total. It is undoubtedly these whites that are most prized for their remarkable quality and famous villages such as Nuits-Saint-Georges, Echezeaux, and Vosne-Romanée. What happens next is anyone’s guess as Trump’s administration is considering raising the current import duty from 10% to 20% in July. François Labet, a prominent figure in the Burgundy wine industry, warns that if this occurs, exports may plummet back to their 2019 levels, where sales nearly halted entirely, leading to a potential drop of about 50%.
The consequences of these tariffs go far beyond Burgundy. Rex Stoltz, vice-president of industry relations at Napa Valley Vintners, is a testament to how interconnected global wine markets are. He stated, “This looks horrible from our perspective. We don’t like it one bit,” emphasizing that Trump’s tariffs could price European wines out of the American marketplace. Stoltz underscored the absurdity of the state of affairs. He noted that even wineries in Napa Valley rely on European products for things like corks and oak barrels.
Moreover, Stoltz mentioned the broader consequences for American wines, particularly in Canada—the most important export market for California wines—where he reported that “there are zero Napa Valley wines on the shelves of stores in Canada.” This pernicious case highlights the unintended consequences that result from the imposition of tariffs on international trade and access to markets.
The French National Wines and Spirits Confederation’s president, Jerome Bauer, voiced his concerns about potential economic losses due to tariffs. He recalled the significant impact of previous import duties during Trump’s first term: “When President Trump raised import duties by 25% for one-and-a-half years of his first mandate, we lost about $600 million very quickly.”
As winemakers like Tremblay and vineyard employees like Élodie Bonet tend to their vines in Burgundy’s picturesque villages, they remain hopeful for a resolution that supports free trade. Bonet remarked on her commitment to nurturing the vines, stating, “We want the vine to put all its energy into the shoots that have the flowers where the grapes are going to grow.”
François Labet and his fellow vintners’ determination to encourage cooperation between the two cultures continues unabated. They need French producers and American merchants to work together, enable each other to bear the weight of tariffs, and maintain robust sales. Labet’s perspective on the matter is clear: “The US is the largest export market for the whole region. Definitely.”
As tensions surrounding trade policy continue to unfold, Burgundy’s winemakers are left to navigate an uncertain landscape that could reshape their business operations and market presence.