Trump’s Wine Tariffs Worry French Winemakers and US Importers

Burgundy is a famous wine area in France. The United States is its biggest buyer. But now, Donald Trump's new tariffs may make these wines too costly for Americans.

In a vineyard in Morey-Saint-Denis, Élodie Bonet works in the cold and rain. She removes small vine shoots so the plant can grow better grapes.

Nearby, winemaker Cécile Tremblay lets visitors taste her red wines in a dark cellar. Her bottles have names like Nuits-Saint-Georges and Clos-Vougeot. Wine lovers admire them.

She sells more than half of her wine abroad. About 10% of it goes to the US. That is a lot for her small business.

Trump first said he might raise taxes on wine by 200%. Then, on April 5, he added a 20% tax on most things from the EU. Four days later, he lowered it to 10%. But he warned it could rise again to 20% or even 50% in July.

Cécile is worried, like many winemakers, but says little. They fear speaking out may make things worse.

François Labet, head of the Burgundy Wine Board, says the US is their top market. US sales were strong before Trump returned to power. In 2024, Burgundy sold 20.9 million bottles to the US, earning €370 million. That’s 26% more than in 2023.

Most people know Burgundy for red wines made from Pinot Noir. But two-thirds of its wine is white, often made with Chardonnay grapes. Chablis is a popular white wine in the US.

Burgundy also makes sparkling wine called Crémant de Bourgogne. Sales of white and sparkling wines are rising, while red wine sales are falling.

Labet says US drinkers now prefer lighter reds like those from Burgundy. In contrast, US-made wines are often strong and high in alcohol.

He remembers when Trump added a 25% tax during a past trade fight. US sales of French wine dropped by half.

Now with the 10% tax, Labet thinks French makers and US buyers will share the cost. But if the tax rises to 20% in July, sales may fall again, like in 2019.

Jerome Bauer, head of France’s wine and spirits group, says they lost $600 million the last time tariffs were this high. Back then, Champagne and wines over 14% alcohol were not taxed. This time, they may be.

He wants free trade, with no extra taxes. That would help both sides.

Even US winemakers are unhappy. Rex Stoltz, from Napa Valley Vintners, says the tariffs hurt everyone. US winemakers also depend on parts from Europe like corks and barrels.

He says prices will rise. And other countries are fighting back. Canada, for example, removed all US alcohol from stores.

He adds, “We just want fair trade with the rest of the world.”