After weeks of heated rhetoric—and even threats of extreme measures—Donald Trump has announced a 20% tariff on European wines exported to the USA. This decision delivers a serious blow to Bourgogne wines in their leading export market, impacting exporters, their partners, and American consumers alike.

The Axe Has Fallen

While the announcement of a 20% tariff was met with dismay, it also brought relief compared to the previously threatened 200% tariff. Though the new tariff may cost Bourgogne wines up to €100 million, it avoids a complete halt to trade.

“We’ve been through this before,” said Laurent Delaunay, President of the Bourgogne Wine Board (BIVB), referencing the 25% tariff in 2019. That measure led to a 15% drop in export volume and a 22% drop in revenue in 2020.

Counting on American Partners

American importers and clients are considered long-standing partners—sometimes even friends. The U.S. wine import system uses a three-tier model (importer → wholesaler → retailer), already inflating prices for consumers.

“Additional tariffs risk pushing prices past psychological limits,” says Delaunay. Producers may lower their ex-cellar prices slightly, but American partners will need to reduce margins to keep prices consumer-friendly.

Concerns also include the potential recessionary impact in the U.S., which could worsen purchasing power and add to the economic damage.

A Call for De-escalation

The BIVB urges French and European authorities to avoid a trade war and instead maintain constructive dialogue with the U.S.

“Let’s pursue a zero-for-zero agreement on wines and spirits instead of retaliatory tariffs,” urges Delaunay.

While Bourgogne already exports to over 170 countries, shifting products from the U.S. to other markets will take time and investment

Fast Facts: Bourgogne Wines in the U.S. (2024)