The Tangled Vines of Trade: Burgundy's Wine Industry Navigates the Tariff Tempest

Jun 3, 2025 By Eric Ward

In the heart of eastern France, nestled amidst rolling hills and ancient vineyards, lies Burgundy—a region renowned for its exquisite wines and centuries-old winemaking traditions. Here, in the village of Morey-Saint-Denis, the scent of earth and budding vines fills the air as spring awakens the land. Yet, beneath this idyllic surface, a shadow looms: the threat of tariffs imposed by the United States, a market that has long been a lifeline for Burgundy's winemakers.


Burgundy's wines are not merely beverages; they are the essence of the region's soul, crafted with meticulous care and a deep reverence for the land. The region's reputation is built on the delicate balance of nature and human expertise, producing some of the world's most coveted wines. From the robust reds of Nuits-Saint-Georges to the elegant whites of Chablis, Burgundy's offerings are as diverse as they are exceptional. However, the recent trade tensions between the US and the European Union have cast a dark cloud over this storied landscape.


Élodie Bonet, a vineyard worker in Morey-Saint-Denis, is a picture of dedication as she trims unwanted shoots from the vines. "We want the vine to put all its energy into the shoots that have the flowers where the grapes are going to grow," she explains, her hands deftly moving through the rows of vines. This meticulous attention to detail is emblematic of Burgundy's winemaking philosophy, where every vine, every grape, and every bottle tells a story.


Cécile Tremblay, owner and winemaker of Domaine Cécile Tremblay, stands amidst her cellar, surrounded by oak barrels and vintage bottles. Her wines, with names like Echezeaux, Vosne-Romanée, and Chapelle-Chambertin, are the pride of Burgundy, sought after by connoisseurs worldwide. Tremblay's connection to her craft is palpable as she pours a taste of her prized reds, their rich aroma filling the air. "For the United States, it's around 10% of the production; it's a big production for me!" she says, her voice tinged with a mix of pride and concern.


The US has long been Burgundy's largest export market, a relationship built on mutual appreciation and economic necessity. Until recently, this partnership was thriving, with Burgundy's wine exports to the US increasing sharply in volume and value. In 2024 alone, Burgundy shipped 20.9 million bottles to the US, generating €370 million in revenue—a 26.2% increase from the previous year. However, the re-election of Donald Trump and the subsequent imposition of tariffs have thrown this delicate balance into disarray.


Donald Trump's tariffs, which initially threatened a 200% mark-up on European alcohol, have been a source of anxiety for Burgundy's winemakers. Although the tariffs were later reduced to 20% and then to 10%, the uncertainty remains. The threat of a potential 50% tariff on all EU goods in the future looms like a specter, leaving winemakers like Tremblay on edge. "Yes, sure, we are worried," she admits, her words reflecting the collective unease of the region.


François Labet, president of the Burgundy Wine Board, which represents the region's 3,500 winemakers, echoes Tremblay's concerns. "The US is the largest export market for the whole region. Definitely," he says. "They are the biggest in volume and the biggest in value." The impact of tariffs on Burgundy's wine industry is not merely financial; it is existential. The US market has been a boon for Burgundy, allowing its winemakers to thrive and expand their reach globally.


Burgundy's wines, predominantly made from the pinot noir and chardonnay grapes, are known for their finesse and complexity. The region's reds, lighter than their New World counterparts, appeal to a growing segment of consumers seeking more delicate and nuanced flavors. Burgundy's whites, especially the popular Chablis, and its sparkling Crémant de Bourgogne, have also found a strong market in the US. This diversity has been a boon for Burgundy, as it allows the region to weather fluctuations in consumer preferences.


However, the threat of tariffs is not new to Burgundy. During a previous dispute over airlines, Trump imposed a 25% import tariff on European wine for 18 months. Labet recalls the impact vividly: "We were hostages of that situation, and it really did affect our sales to the US. We had a drop of about 50% of our exports to the US." The current 10% tariff, while less severe, still poses a significant challenge. Labet predicts that French wine producers and US merchants will share the burden of the new import duty to maintain sales, but the long-term impact remains uncertain.


If Trump were to increase the tariff to 20% in July, as he has threatened, the consequences could be dire. "We will go back to the 2019 situation where the market was almost stopped," says Labet. For French wines in general, the stakes are even higher. Jerome Bauer, president of the French National Wines and Spirits Confederation, estimates that a similar tariff during Trump's first term resulted in a loss of about $600 million. "But back then, Champagne wasn't included, and neither were wines stronger than 14 degrees of alcohol. So you can see the scale of the threat today," he says.


Bauer advocates for free trade as the solution, a stance that is not surprising given France's significant trade surplus with the US in wines and spirits. However, the impact of tariffs extends beyond economic calculations. Trade wars have a ripple effect, affecting not only the producers but also the consumers and the entire supply chain.


Interestingly, the American wine industry, which one might expect to be celebrating the tariffs, is also feeling the pinch. Rex Stults, vice-president of industry relations at Napa Valley Vintners, which represents 540 wineries in California's famous wine region, expresses his frustration. "This looks horrible from our perspective. We don't like it one bit," he says. Stults highlights the interconnectedness of the global wine industry, noting that even Napa Valley wineries rely on Portuguese corks and French oak barrels. "They're already expensive, and the potential is that they will get more expensive," he adds.


Moreover, trade wars have a reciprocal impact. The tariffs imposed against Canada have led to a boycott of American products, severely affecting US wine exports. "Canada is the most important export market for California wines, and one of the top export markets for Napa Valley wines. Right now, there are zero Napa Valley wines on the shelves of stores in Canada," Stults says. "They've removed all American alcohol beverage products from their store shelves!"


Stults' plea for a level playing field reflects a broader sentiment within the global wine community. The desire to compete fairly and sustainably is a common goal, one that transcends national borders and economic interests. As Burgundy's winemakers navigate the uncertainty of tariffs, they are reminded of the delicate balance that sustains their industry. The land, the grapes, the craftsmanship, and the market—all are intertwined in a complex dance that requires harmony to thrive.


In the face of these challenges, Burgundy's winemakers remain resilient. Their dedication to their craft, their deep connection to the land, and their unwavering commitment to quality are their greatest strengths. While the future may be uncertain, the legacy of Burgundy's wines endures. The region's ability to adapt and innovate, combined with the global appreciation for its wines, offers a glimmer of hope.


As the vines in Morey-Saint-Denis continue to grow, nurtured by the hands of workers like Élodie Bonet, and as winemakers like Cécile Tremblay pour their hearts into each bottle, Burgundy's spirit remains unbroken. The region's wines, with their rich history and unparalleled quality, will continue to captivate the world. The tariff tempest may rage, but Burgundy's vines are deeply rooted, and its wines are a testament to the enduring power of tradition and excellence.


The story of Burgundy's wine industry is not just about trade and tariffs; it is about the enduring human connection to the land and the timeless art of winemaking. As long as there are those who cherish this connection, Burgundy's wines will continue to flow, a symbol of resilience and hope in an ever-changing world.



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