Global Wine Industry United Against Looming Trade Tariffs
Table of Contents
A United Front Against Trade Disputes
As the specter of US tariffs looms, the global wine industry is voicing strong concerns about potential disruptions to trade. While some businesses are already experiencing shipment delays from Europe,others fear a broader economic downturn. Industry leaders, including president Ice, Matteo Zoppas, are urging caution, while the EU has delayed retaliatory tariffs on American goods. The Wine Origins Alliance (WOA), representing 34 organizations from nine countries across Asia, Europe, North America, and Oceania, is actively advocating for the wine sector. This alliance,encompassing 100,000 winemakers and cellars responsible for over $8 billion in global exports and supporting over a million jobs,has directly appealed to both the US and EU governments to de-escalate trade tensions.
WOA’s Plea: Wine Should Unite, Not Divide
In letters addressed to European Commissioner for Trade, Maroš Šefčovic, and US Trade Representative Ambassador Jamieson Greer, the WOA emphasizes the unifying role of wine.The letters, signed by councils, consortia, and wine associations from key wine regions, highlight wine’s contribution to economic, social, and cultural well-being, and also its ancient role in fostering international understanding.
Wine is a sustainable product that promotes the economic, social and cultural well -being of people and the planet and promotes peace and prosperity, considering the role that, historically, has seen it bring nations together in moments of mutual understanding on an international scale. The wine should unite us, do not divide us.
Wine Origins Alliance
Transatlantic Concerns: Specific Requests to Avoid tariffs
The WOA’s letters specifically urge both the EU and the US to avoid imposing tariffs on wine as part of broader trade negotiations. The European letter requests that Commissioner Šefčovic refrain from imposing tariffs on American wine in response to US duties on EU steel and aluminum. Conversely, the letter to Ambassador Greer asks for the exclusion of wine and alcohol products from any future US trade actions against the EU. The US and EU are the world’s leading wine producers, with combined exports exceeding $28.5 billion in 2024.
Competition and collaboration: A Delicate Balance
Despite competing in the global wine market, the 28 regions involved in drafting the WOA’s letters recognize the benefits of fair competition. The current tariff threats are causing significant anxiety and uncertainty among WOA members. These measures would not only harm consumers and producers but also negatively impact distributors, retailers, and restaurateurs – the entire wine ecosystem.
The Ripple Effect: Impact on Small Businesses and Tourism
The potential tariffs pose a significant threat to micro, small, and medium-sized enterprises (SMEs) that are integral to wine regions. These businesses contribute to tourism growth and support employment in related sectors. Such as, in Napa Valley, California, small family-owned wineries are the backbone of the region’s tourism industry, which generates billions of dollars annually. Similar situations exist in regions like Bordeaux, France, and Tuscany, Italy, where wine tourism is a major economic driver. According to a recent study by the Wine Institute, the US wine industry alone contributes over $276 billion annually to the American economy, supporting over 1.7 million jobs.
In particular, the duties would have an immense impact on micro, small and medium -sized companies that, together with the wine regions in which they work, participate in the growth of tourism and affect the economy and employment within related sectors, but not only.
Wine Origins Alliance