In Vaucluse, winegrowers remember Donald Trump's first term well. The American president established customs taxes of 25% on French wines. It was therefore difficult for wine growers to continue to export their wines across the Atlantic. With the re-election of Donald Trump at the head of the United States, this Wednesday, November 6, these taxes could see the light of day again, which worries professionals in the sector.
Christian Paly is a winegrower in Tavel and Lirac and president of the INAO, the National Institute of Appellations of Origin. It exports approximately 200,000 bottles per year to the United States. “It's our first export market, it's 10% of our markets, it's significant. But we are a very small producer. The American market is the first or even the second export market for French wines and spirits There is not a French winemaker or merchant who does not export to the United States, so we were all concerned by these taxes.
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These taxes have put a brake on competitiveness French wines. “At the time, we had difficulty passing on tax prices to the American market. There was a loss of competitiveness for us. And what's more, with some of our European colleagues, who were not affected by these taxes, there were distortions of competition between French wines and European wines not affected by the so-called Trump taxes. explains Christian Paly. For the French wine industry, this is a loss of 500 to 600 million euros of turnover.
“We remain concerned and vigilant”
These taxes were ultimately suspended under the presidency of Joe Biden, in 2021. “We welcomed the suspension of these taxes, says Christian Paly. The risk is to see them updated. Donald Trump, as part of his electoral campaign, left no mystery. He said he would increase tariffs regardless of products coming from China and Europe. We do not know if French wines and spirits are affected. We therefore remain both worried and very vigilant.”
Especially since these new taxes would intervene in an already difficult context for the sector according to Christian Paly: “A context of economic crisis for world viticulture and therefore including French viticulture, a drop in American imports for several months now of European and French wines. Obviously, in this already difficult commercial context of Europe vis-à-vis of the United States, additional taxes would be absolutely unwelcome.” Vauclusian winegrowers therefore remain alert to upcoming American announcements and decisions.
