The Fort Worth Press - Embattled Bordeaux winemakers see Trump's tariffs as latest blow

USD -
AED 3.672504
AFN 65.000368
ALL 81.757752
AMD 361.930403
ANG 1.790365
AOA 918.000367
ARS 1517.834304
AUD 1.435544
AWG 1.8
AZN 1.70397
BAM 1.745081
BBD 2.014187
BDT 123.310283
BGN 1.683441
BHD 0.377783
BIF 2992.192728
BMD 1
BND 1.280571
BOB 11.844107
BRL 4.990804
BSD 1.000045
BTN 96.679902
BWP 13.757752
BYN 3.042248
BYR 19600
BZD 2.011332
CAD 1.426204
CDF 2310.000362
CHF 0.829664
CLF 0.024742
CLP 976.970396
CNY 6.69215
CNH 6.687704
COP 3195.29
CRC 456.301584
CUC 1
CUP 24.001785
CVE 98.750394
CZK 21.763304
DJF 178.086103
DKK 6.672604
DOP 60.611198
DZD 134.724069
EGP 52.403301
ERN 15
ETB 162.480749
EUR 0.892504
FJD 2.24725
FKP 0.755993
GBP 0.755201
GEL 2.590391
GGP 0.755993
GHS 11.77039
GIP 0.755993
GMD 73.503851
GNF 8797.680125
GTQ 7.644716
GYD 209.141639
HKD 7.848504
HNL 26.843631
HRK 6.725604
HTG 130.956948
HUF 325.760388
IDR 17891.4
ILS 3.06346
IMP 0.755993
INR 96.775504
IQD 1515.056882
IRR 1779470.000352
ISK 122.150386
JEP 0.755993
JMD 158.724069
JOD 0.70904
JPY 158.28504
KES 129.698862
KGS 87.450384
KHR 4060.673656
KMF 440.00035
KPW 900.000318
KRW 1340.880383
KWD 0.31096
KYD 0.833371
KZT 454.436761
LAK 22426.053982
LBP 89555.476244
LKR 330.885568
LRD 171.010484
LSL 16.545706
LTL 2.95274
LVL 0.60489
LYD 6.430515
MAD 9.833504
MDL 17.93085
MGA 4459.513718
MKD 54.940888
MMK 2100.103005
MNT 3599.666808
MOP 8.083426
MRU 39.963417
MUR 47.460378
MVR 15.450378
MWK 1734.106625
MXN 18.414104
MYR 4.085504
MZN 63.910377
NAD 16.545706
NGN 1329.000344
NIO 36.80571
NOK 9.561404
NPR 154.687486
NZD 1.783644
OMR 0.384742
PAB 1.000045
PEN 3.429668
PGK 4.534464
PHP 62.745038
PKR 276.931162
PLN 3.916904
PYG 5688.155253
QAR 3.640374
RON 4.766038
RSD 104.733437
RUB 85.159581
RWF 1474.102164
SAR 3.751874
SBD 8.078071
SCR 14.675038
SDG 601.503676
SEK 9.999204
SGD 1.279404
SHP 0.755572
SLE 24.670371
SLL 20969.491881
SOS 571.492304
SRD 37.692504
STD 20697.981008
STN 21.860361
SVC 8.75039
SYP 13002.000254
SZL 16.542494
THB 33.553038
TJS 9.200535
TMT 3.51
TND 3.009508
TOP 2.40776
TRY 49.221304
TTD 6.793665
TWD 31.961404
TZS 2640.285523
UAH 44.916529
UGX 4088.733456
UYU 40.164333
UZS 11900.959179
VES 875.701604
VND 25899.5
VUV 120.010419
WST 2.78551
XAF 585.444314
XAG 0.016442
XAU 0.000238418806
XCD 2.70255
XCG 1.802364
XDR 0.707052
XOF 585.444314
XPF 106.410886
YER 236.203589
ZAR 16.52005
ZMK 9001.203584
ZMW 19.875976
ZWL 321.999592
SSP 5757.531856
MXV 2.08033
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

Embattled Bordeaux winemakers see Trump's tariffs as latest blow
Embattled Bordeaux winemakers see Trump's tariffs as latest blow / Photo: © AFP

Embattled Bordeaux winemakers see Trump's tariffs as latest blow

The sun is shining, the grapes are ripe and a good harvest is expected but a heavy cloud is looming over Laurent Dubois's vineyard in southwestern France.

Text size:

"It's not up to me to pay the Trump tax!" he fumes, faced with the 15 percent in customs duties that is to hit his products in US President Donald Trump's trade war.

Trump's long-threatened tariffs are just the latest blow to be sustained by Bordeaux winemakers, who are operating in an increasingly tough market as consumer tastes change.

The duties imposed could have been worse and on their own will not destroy the industry, winemakers emphasise, but they say they are an extra burden they could so without.

Dubois, 57, a major figure in the Bordeaux region famous for its fruity reds, exports 70 percent of his production to 25 countries, including 10 percent to the United States.

The ninth generation to lead the Chateau Les Bertrands in Reignac, north of Bordeaux, Dubois is already seeing the effects of the 15 percent levy, which is being imposed after the EU failed to secure an exemption for wines and spirits.

- 'Narrow margins' -

"For our last shipment, a client in Texas asked us to give him a price," Dubois told AFP. "But I'm French, I didn't vote for Trump. So it's not up to me to pay, knowing that our margins are very narrow."

The United States is by far the largest export market for Bordeaux wines, with sales of over 400 million euros ($469 million) or 20 percent of the total.

China comes next on 300 million euros and the UK on 200 million euros, according to the Bordeaux Negoce union.

Customs duties, combined with the weakness of the dollar against the euro, constitute "a double whammy" for the price of bottles on the American market, said Dubois.

He said he expects a "small drop" in his exports to the United States but remains phlegmatic: "It could have been worse because a few months ago, Trump announced taxes of 50 percent or even 200 percent."

His opinion is echoed by Laurent Rousseau, a winegrower in Abzac, near Saint-Emilion in the Bordeaux region, for whom the US market represents 43 percent of sales.

"There will be a price adjustment but there is no expected market shutdown. After that, I don't know what will happen in December" during the annual renegotiation of the contract with his importer, he said.

- 'It's scary' -

Export difficulties have led to overproduction and a collapse in wholesale prices in recent years.

A subsidised uprooting plan has reduced the cultivated area to 90,000 hectares (222,000 acres), compared to 103,000 two years ago.

US customs duties add to these difficulties, against a backdrop of a chronic decline in wine consumption as lifestyles change in France and elsewhere.

"It's bad news, yet again," said Dubois. "We had to reduce our area by about 10 percent (to 130 hectares), we did the uprooting.

"And then we see a number of companies, winegrowers who are shutting down or are in receivership. It's scary. We say to ourselves: 'The next one will be me'."

Further north, the vineyards of Cognac are also being hit by the customs duties, as the United States is the largest market for the famous spirit.

China -- the second-largest destination for a sector that is 98 percent export-dependent -- has previously imposed taxes or price increases.

Bertrand de Witasse, a winemaker who supplies the Remy Martin distillery, saw his orders drop by 25 percent during a renegotiation in May.

"We're all affected," he admitted. "But as they say in Cognac, 'You're a billionaire for one year and a poor man for 10'.

"So, the years you're a billionaire, you have to save and avoid wasting money."

French winemakers are far from being the only Europeans affected.

On Thursday, the Italian Wine and Spirits Federation (Federvini) expressed "its deep concern" at the lack of an exemption for "wines, spirits, and vinegars".

"We are seeing a missed opportunity," said Federvini president Giacomo Ponti, emphasising that "the agreement could have fully recognised the strategic importance" of our sectors "in transatlantic relations."

T.Mason--TFWP