Bordeaux winemakers face uncertainty as US tariffs loom

The Sun

a day ago

BORDEAUX: French winemakers in the famed Bordeaux region are bracing for the financial impact of US tariffs, with industry leaders calling the uncertainty 'the stuff of nightmares.'
The US remains the top export market for Bordeaux wines, accounting for €400 million in annual sales—20% of the region's total exports.
Sunday's US-EU trade deal failed to clarify tariff rates for European alcohol exports.
While US President Donald Trump announced a 15% across-the-board tariff, EU chief Ursula von der Leyen hinted at possible exemptions, stating that 'zero-for-zero' agreements for alcohol could still be negotiated.
Philippe Tapie, chairman of Bordeaux Negoce, expressed frustration over the unpredictability. 'One day, it is white, the next it is black—the US administration can change its mind from one day to the next,' he said.
The tariffs compound existing struggles, including declining consumption and overproduction, which have already pushed a third of Bordeaux's 5,000 winegrowers into financial distress.
Twins Bordeaux, a major merchant, reported a 50% drop in US-bound sales this year.
Co-director Sebastien Moses revealed they had stockpiled inventory preemptively but warned this was not a sustainable solution.
Some high-end wines were even airlifted to bypass delays, though at triple the cost of sea freight.
Jacques Bouey, CEO of Bouey wines, noted his firm had diversified exports to mitigate risks. 'Commercial strategies can no longer rely on one or two markets,' he said.
With Trump's shifting deadlines—from 10% to 30%—Tapie warned, 'At 30%, no. End of story.' The industry now faces a critical wait for final tariff terms, with August 1 looming as the next decisive date. - AFP