Why Trump's tariffs threaten the livelihoods of French winemakers

DW (English)

In France's Alsace region, wine is more than a drink. It’s history, identity, and tradition which are all on the line now as the trade dispute between the US and Europe intensifies.

Transcript

00:00This vineyard is Mathieu and Marie Boesch's biggest pride.

00:07Nestled among the hills just outside Colmar in eastern France,

00:11the Boesch family has been producing wine here since 1640.

00:16Now, during the grape harvest, they work from dawn till dusk.

00:22At lunchtime, everyone gathers to eat, drink and celebrate the fruit of their labour,

00:27a reflection of the region's culture and tradition.

00:31It's a story that's been passed down for generations.

00:34We see ourselves as just one link in a long chain.

00:37When we plant a new vine, we imagine the people who will continue the work after us.

00:42We still harvest grapes from vines planted by my great-grandfather back in the 1920s.

00:51But now, this small family business of just 15 hectares is under pressure.

00:56The Boesch have been struggling to sell their wares in America

00:59since the U.S. introduced a 15 percent import tax on all wines from the European Union.

01:05A real loss as every tenth bottle the Boesch produce usually crosses the Atlantic.

01:11We make wine that we love, a product we're proud of.

01:17But if the buyers aren't there, yeah, wow, how can we make up for the losses?

01:24How are we going to manage, now and in the future?

01:28It keeps me up at night. It really worries me.

01:32Yeah, it keeps me up at night.

01:36Wine in Alsace, like across France, is more than just a drink.

01:40It's an identity, a way of life.

01:42But like much of Europe's economy, the industry depends on exports.

01:46Typically, around a third of all French wine is sold abroad.

01:50In 2024, France exported nearly 13 billion dollars worth of wine,

01:56making it the world's largest exporter by value.

01:59The United States is its biggest consumer by far,

02:02followed by the U.K., China, Germany and Singapore.

02:07Here in Colmar, the heart of Alsace wine country,

02:10locals know how much their region's identity is bound up in these bottles.

02:18Fifteen percent is too much.

02:20It will make the wine too expensive and kill our small winemakers.

02:25It's a bad idea.

02:26It slows down trade and prevents exchange.

02:31I think the impact will be quite limited,

02:33because Americans who want to drink French wine,

02:35which is highly valued in the U.S.,

02:37will continue buying it, even if it costs 15 percent more.

02:43I just hope for French winemakers

02:45that no American alternative will replace them.

02:51The new taxes are especially dangerous for small family vineyards,

02:55like the Boches,

02:56who produce wine in the mid-range price segment, experts warn.

03:01If you are buying, for a special occasion,

03:04a very good bottle of champagne,

03:06even if it is more costly,

03:08your elasticity is different.

03:10You are more flexible to put an extra dollar on those bottles.

03:14A consumer which is looking for a wine below $15,

03:18they are not going, even if they like a wine,

03:21they are not going to put two more dollars on that wine.

03:24What could be a way forward?

03:28Lowering quality in order to lower prices,

03:30to make up for the increase?

03:32For the Boche family, that isn't an option.

03:34Quality comes first.

03:36And with cultivation, harvest and export costs already high,

03:40profit margins are slim.

03:42We can't cut production costs without changing the very identity of our wine.

03:50It's like asking a top chef to cook with fewer ingredients.

03:54The dish won't be the same.

03:56Or taking colors away from a painter.

03:58The painting just wouldn't be possible.

04:00For us, it's exactly the same.

04:02If we can't make the wine we want to, it's no longer our product.

04:08On top of tariffs, European wine growers face another reality.

04:12People in Europe are drinking less alcohol.

04:15That makes new international markets more important than ever.

04:19Ideally, we'd sell all our wine right here in Alsace.

04:23But that's impossible.

04:25And we don't want to change our style and taste just to appeal to a bigger market.

04:30We like our wines the way they are.

04:32So instead, we'll look for new markets abroad.

04:35Maybe Scandinavia, maybe elsewhere.

04:38There are still plenty of places we haven't explored.

04:41European trade officials are still trying to secure DIO to lower US tariffs on wine.

04:49In the meantime, winemakers here in Alsace can only hope that international politics won't sour centuries of French tradition.

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