April 3, 2025 (Bourgogne, France) — After weeks of heated rhetoric—and even threats of extreme measures—Donald Trump has finally shown his hand: a 20% tariff will now be imposed on European wines exported to the USA. The industry deeply regrets this decision, which delivers a serious blow to Bourgogne wines in their leading export market. It will have a major impact on exporters, their partners, and also American consumers. The feeling in the region is one of both astonishment and measured relief.
The Axe Has Fallen
Given that 200% tariffs had been loudly announced back on March 13, last night’s news of a 20% rate was met with dismay -but also a certain sense of relief, as the industry feels it has narrowly avoided the worst. While this new measure will affect exports – potentially costing Bourgogne wines up to 100 million euros -it will not bring trade to a sudden halt, as would have been the case with higher tariffs.
“We’ve been through this before,” recalls Laurent Delaunay, President of the Bourgogne Wine Board (BIVB). “During his first term, Donald Trump imposed a 25% tariff in 2019 on still wines in bottles, as part of the Boeing-Airbus trade dispute. The effect was immediate: our exports to the U.S. plummeted by 15% in volume in 2020, leading to a 22% drop in revenue!”
The Industry Hopes to Count on Its American Partners
American importers and clients are, above all, long-standing partners -often even friends. Winegrowers and négociants have built lasting relationships with them, in some cases spanning several generations, for over 100 years.
“The U.S. wine import system is fairly complex, with a mandatory three-tier distribution model: importer, wholesaler, and then retailer,” explains Delaunay. “This already drives up the price for the end consumer. The risk with these additional tariffs is that they could push our wines past a psychological price threshold. I believe many producers will make an effort to lower their ex-cellar prices slightly. But we’ll also need our American partners to do their part by trimming their margins so the final price remains within a range acceptable to consumers.
What also concerns us is the potential recessionary effect and its consequences on purchasing power in the U.S., which would add to the direct impact of higher tariffs. We are also extremely worried about the broader economic fallout of these decisions. This may only be the beginning of a turbulent period that could affect all our markets.”
The Industry Calls for De-escalation
It is crucial that French and European authorities refrain from engaging in a trade war. “We urge them to continue a firm and constructive dialogue with U.S. authorities, so that reason prevails and we avoid a cycle of retaliation where everyone loses,” says Delaunay. “Instead of entering a tit-for-tat tariff race, let’s work toward a positive agenda for wines and spirits: a zero-for-zero agreement is within reach.”
Bourgogne can also rely on the dynamism of its businesses, which already export to more than 170 countries. Some of the wines that can no longer be sold in the U.S. may be redirected to other markets. However, this will require increased investment across the entire industry—and time.
Information About Bourgogne Wines on the U.S. Market
In 2024, Bourgogne exported nearly 21 million bottles to the United States—a 16% increase compared to 2023—reaching a record turnover of nearly €370 million (+26% vs. 2023).
The volume breakdown is as follows: 63% white wines, 26% red wines, and 11% Crémant de Bourgogne. Bourgogne AOC wines account for the majority, while wines from Chablis represent 29% of white wine sales. The U.S. has been the leading market for Chablis wines since 2023.
