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European wine producers brace for potential 200% tariffs

European wine producers brace for potential 200% tariffs
Yesterday 14:10 By: Zahouani Ilham
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European wine and Champagne producers are preparing for significant financial strain due to a looming 200% tariff on their exports to the United States. The threat follows the European Union's 50% tariff on American whiskey, which is set to take effect on April 1 as a retaliatory measure against U.S. tariffs on European steel and aluminum.

Italy, France, and Spain are among the leading wine exporters to the U.S. David Levasseur, a Champagne producer from France, expressed concern, hoping the U.S. President’s comments were just empty threats. He stated, "It means I’m in trouble, big trouble. We hope it's just 'blah blah.'" Levasseur emphasized that such a tariff would severely impact his business, halting his exports to the U.S.

The French Federation of Exporters of Wines and Spirits, represented by Gabriel Picard, also warned that a 200% tariff would devastate France’s wine industry, valued at €4 billion annually in U.S. exports. Despite the severity of the situation, Picard acknowledged that European leaders had no choice but to respond to Trump’s tariffs with their own.

Italy’s wine sector is especially vulnerable, as the U.S. is its largest wine market. With strong growth in sales, particularly in high-end restaurants, Italy’s winemakers fear they may lose their position in the U.S. market. Piero Mastroberardino, Vice President of Italy’s national winemakers association, emphasized that tariffs would make Italian wines unaffordable, and while the U.S. importers increased orders, they couldn't offset the impact of such high tariffs.

Spain also faces similar concerns. The country’s wine industry, especially producers of Cava, relies heavily on the U.S. market. With exports growing by 7% last year, Spain fears losing its market share if tariffs are imposed. Begoña Olavarría, an economic analyst in Spain, expressed hope that the situation wouldn’t escalate. Mireia Pujol-Busquets, a Cava producer, highlighted the difficulty of absorbing such high tariffs after years of investment in the U.S. market.

European wineries are united in their desire to resolve the situation through negotiations, but the threat of a 200% tariff looms large, leaving many concerned for their businesses' future.

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