US President Donald Trump has threatened a 200% tariff on European wine if the European Union imposes retaliatory tariffs on US products. The move could have devastating consequences for Europe’s wine industry, particularly smaller wineries.
David Levasseur, a third-generation wine grower from France, warns that the tariff would essentially shut down his business in the US. “It means I’m in trouble, big trouble,” he said. “We think there will be consequences.”
Italy, France, and Spain are among the top five exporters of wine to the US, with total exports worth €4 billion ($4.3 billion) annually. If the tariff is implemented, it could be a “hammer blow” for France’s industry, as Gabriel Picard, head of the French Federation of Exporters of Wines and Spirits, put it.
The US is Italy’s largest wine market, with sales having tripled in value over the past 20 years. The threat of tariffs has already caused concern among Italian winemakers, who fear that high-end wines like Piero Mastroberardino’s “Taurasi Radici” could become unaffordable.
In Spain, producers of bubbly Cava are also concerned about the impact of US tariffs. Mireia Pujol-Busquets, owner of Alta Alella Bodega, said her business and its 40 employees risk losing sales of over 25,000 bottles if the American market slams shut.
The European wine industry is caught in a trade spat with the US, with both sides imposing tariffs on each other’s products. While some experts say it’s irrational to consider a 200% tariff, others warn that it could have serious consequences for smaller wineries and the overall industry.
Source: https://apnews.com/article/donald-trump-wine-italy-france-spain-europe-tariffs-escalation-spat-74c133a51219c49ce8b807e978757cf7