Hard blow for cheese: the USA declares trade war on France (and wine wins)
![In the world of wine, trade tensions between the United States and France are causing a lot of ink to flow. As wine enthusiasts, we are closely following this war of customs tariffs that could shake up the global wine market. Let's dive together into the issues of this conflict where the nectar of Bacchus seems to come out on top against cheese. The stakes of the Franco-American trade war The election of Donald Trump to the presidency of the United States in 2024 has rekindled trade tensions with the European Union. France, in particular, has found itself in the crosshairs of the American administration following the increase in its tax on digital services. This tax, increasing from 3% to 5%, mainly targets American technology giants. Faced with this measure perceived as hostile, an American reaction seems inevitable. On the other hand, contrary to expectations, French wine could be spared from these reprisals. Ben Aneff, head of the US Wine Trade Alliance, is optimistic about the future of wine imports: “Don’t assume that tariffs on wine are inevitable. We have the most compelling story to tell of all the [potential tariff] options. The last time we told it, we won.” Wine, a fair trade between Europe and the United States As sommeliers and wine lovers around the world, we know that the wine market is an example of fair trade between Europe and the United States. Unlike other agricultural sectors, there are no significant trade barriers for wine. This could work in wine’s favor in the upcoming negotiations. Robert Lighthizer, a potential future US Trade Representative, is known for his vision of fair trade rather than free trade. Wine, already embodying this ideal, could therefore be spared from trade tensions. Here is a summary table of French wine imports to the United States: Type of wine Percentage of sales Sparkling wine 36% Rosé wine 34% Red wine 15.6% White wine 12% The economic impact of tariffs on wine The US Wine Trade Alliance makes a strong argument: for every dollar sent to the EU for wine, American companies generate $4.52 in revenue. This three-tier system (importers, distributors, restaurateurs) greatly benefits the American economy. Andrew Fortgang, a restaurant owner in Oregon, highlights the importance of wine to the profitability of fine dining establishments. He warns of the potential consequences of tariffs: Closure of some restaurants Change in consumption habits Loss of cultural identity linked to food and wine pairings As wine travelers, we know that each terroir is unique. A Sancerre cannot be replaced by a Chilean Sauvignon Blanc, despite the latter's qualities. It is this specificity that gives wine its strength in this trade conflict. Towards a resolution of the conflict? The situation remains uncertain for importers and lovers of French wines. Kate Laughlin, CEO of Martine's Wines, expresses this uncertainty: "We will certainly review our purchasing plan for the coming year. The biggest difficulty for us is the uncertainty that this creates." Nevertheless, the wine industry enjoys significant support within the American Congress. Restaurants, places of celebration and conviviality, play a crucial role in the lives of elected officials as well as in those of all Americans. Ultimately, this tariff war could paradoxically strengthen the position of wine on the international trade chessboard. As ambassadors of wine, we remain confident in the capacity of this age-old nectar to transcend borders and economic conflicts.](https://cdn.shopify.com/s/files/1/0284/0032/0643/files/Le_vin_l_emporte_sur_le_fromage_dans_la_guerre_des_tarifs_douaniers_entre_la_France_et_les_Etats-Unis_600x600.webp?v=1732546230)
In the world of wine, the trade tensions between the United States and France are causing a lot of ink to flow. As wine enthusiasts, we are closely following this war of customs tariffs that could shake up the global wine market. Let's dive together into the stakes of this conflict where the nectar of Bacchus seems to come out on top against cheese.
The stakes of the Franco-American trade war
The election of Donald Trump as US president in 2024 has reignited trade tensions with the European Union. France, in particular, has found itself in the crosshairs of the US administration following the increase in its digital services tax . This tax, increasing from 3% to 5%, mainly targets American technology giants.
Faced with this measure perceived as hostile, an American reaction seems inevitable. On the other hand, contrary to expectations, French wine could be spared from these reprisals. Ben Aneff, head of the US Wine Trade Alliance, is optimistic about the future of wine imports:
"Don't assume that wine tariffs are inevitable. We have the most compelling story to tell of all the [potential tariff] options. The last time we told it, we won."
Wine, a fair trade between Europe and the United States
We, sommeliers and wine lovers around the world, know that the wine market is an example of fair trade between Europe and the United States. Unlike other agricultural sectors, there are no significant trade barriers for wines.
This particularity could play in favor of wine in the upcoming negotiations. Robert Lighthizer, a potential future U.S. trade representative, is known for his vision of fair trade rather than free trade . Wine, already embodying this ideal, could therefore be protected from trade tensions.
Here is a summary table of French wine imports to the United States:
| Type of wine | Percentage of sales |
|---|---|
| Sparkling wine | 36% |
| Rosé wine | 34% |
| Red wine | 15.6% |
| White wine | 12% |
The economic impact of tariffs on wine
The US Wine Trade Alliance makes a strong argument: for every dollar sent to the EU for wine, US companies generate $4.52 in revenue. This three-tier system (importers, distributors, restaurateurs) greatly benefits the American economy.
Andrew Fortgang, a restaurant owner in Oregon, emphasizes the importance of wine to the profitability of fine dining establishments. He warns of the potential consequences of tariffs:
- Closure of some restaurants
- Changing consumption habits
- Loss of cultural identity linked to food and wine pairings
As wine adventurers, we know that each terroir is unique. A Sancerre cannot be replaced by a Chilean Sauvignon Blanc, despite the qualities of the latter. It is this specificity that gives wine its strength in this commercial conflict.
Towards a resolution of the conflict?
The situation remains uncertain for importers and lovers of French wines. Kate Laughlin, CEO of Martine's Wines, expresses this uncertainty: "We will certainly review our purchasing plan for the coming year. The biggest difficulty for us is the uncertainty that this creates."
Nevertheless, the wine industry enjoys strong support within the U.S. Congress. Restaurants, places of celebration and conviviality, play a crucial role in the lives of elected officials and all Americans.
Ultimately, this tariff war could paradoxically strengthen the position of wine on the international trade chessboard. As ambassadors of wine, we remain confident in the ability of this age-old nectar to transcend borders and economic conflicts.
