Trump’s tariff war, US public health agencies gutted, Old Vine Heroes announced

Hi everyone, this is Sam with the Wine News in Five. We have a big-ticket news item on the docket but before I get there, some site news.

Yesterday on the JancisRobinson.com YouTube channel, we released our 15th and final episode of Vintners’ Tales. This one was recorded in 1992 and features Lady Jennifer Bute, the Marchioness of Bute in Scotland and the proprietor of Bute Wines, an importing company. Jancis and Bute discuss how she turned ardent curiosity and an obsessive wine-buying habit into a business and how she juggles the responsibilities of running her company alongside her duties keeping up Mount Stuart House – a manor so large that she couldn’t say how many rooms it contained.

I have delighted in every second of these old interviews and I hope you have, too. We’re still missing one episode featuring Howard Ripley. If we ever manage to find it, we will, of course, upload it.

On to the news!

Trump’s tariff wars

We knew these announcements were coming but I don’t think anyone expected how sweeping they would be. On Wednesday 2 April the Trump administration announced tariffs of at least 10% on all US trading partners. Every country in the EU was hit with 20% tariffs and South Africa was hit with 30% tariffs.

While 10 to 30% is not as bad as the 200% tariffs that he originally threatened to impose on EU wine, it is nonetheless incredibly damaging to both foreign and domestic businesses. Just to be clear, foreign wineries do not pay tariffs. Tariffs are paid by US importers when the goods reach their port of entry. Which means that while demand for foreign wine will decrease due to increased prices, thereby hurting foreign producers, it is US businesses who will literally pay the price of this decision.

Businesses were given the barest bit of breathing room: If goods were on the water by 12 am Eastern time yesterday, 4 April, they will not be subjected to the blanket 10% tariffs when they reach their port of entry. The higher tariffs of 20% on the EU and 30% on South Africa will kick in at midnight on 9 April. Importers are currently racing to get goods on the water.

Ultimately, the effect of this will be increased prices for wine drinkers – likely within the next few weeks. It will also reduce variety. It’s possible that the US will lose some of our allocation of the most lauded wines in the world due to lower demand. These wines will readily find an importer in a different country. Even if tariffs lift, these wines will not be redirected back to us.

Domestic wines will also be hurt by the tariffs, as steel tanks, French oak barrels, French oenological products and Portuguese corks just went up in price. Meanwhile, distributors – the businesses that sell wines to retail stores and restaurants – are likely trying to figure out how they’re going to make ends meet with less demand for international wines; if they need to cut staff, there will be less sales support for domestic wines.

On a personal note, the cost to study wine – for me that’s the Master of Wine programme, for others it might be programmes with the Wine and Spirits Education Trust or the Court of Master Sommeliers – just went up by about 20%, because if you’re studying French wine, you cannot substitute US wine.

US public-health agencies gutted

On 22 February I covered mass firings at the Food and Drug Administration (FDA) and the US Department of Agriculture (USDA). On 1 April the Trump Administration fired 10,000 staffers across US agencies that support public health in all sorts of ways, such as the FDA, responsible for food and beverage safety and SAMHSA, which provides resources, grants, data and evidence-based practices for mental and substance use disorders. Without vital staff, these agencies could become less effective.

Old Vine Hero Awards winners announced

On Monday 31 March the winners of The Old Vine Hero Awards were announced. The Next Generation award went to Carlos and Juanjo Cerdán of Bodega Cerrón for revitalising old-vine vineyards in Jumilla, Spain. The Best Viticulture Team award went to Bodega y Viñedos Yokich in Bolivia for their support and partnership with small growers over the last 20-plus years in order to protect old-vine vineyards. The Communication & Education award went to Michèle Shah, The Old Vine Conference’s regional ambassador for Italy, for raising awareness of Italy’s viticultural heritage. The Research award went to Plaimont, a co-op in south-west France, for their research on the effect of biodiversity in vineyards on environmental and market resiliency. Finally, the Old Vines, New Technology award went to Marta Juega, founder of PI Concept, for the development of an analytics tool that helps producers measure their sustainability and implement changes to improve water retention, reduce waste and enhance soil health. 

Gérard Basset Foundation education grants 

On 31 March the Gérard Basset Foundation announced funding for 12 new grants to support organisations providing education for the wine industry. Grants were awarded to the Pinotage Youth Development Academy (PYDA), International Wine Education Centre and The Pebbles Project in South Africa; Equal Measures and Unity Works in the UK; Bordeaux Mentor Week in France; Panama Wine Academy in Panama; AHIVOY and The 280 Project in the US; Bhutan Wine Company in Bhutan; Wine & Spirits Professional Centre in Greece; and EduVino Paso a Paso in Mexico.

Congratulations to all winners and grantees – you do incredible work, and I am very proud to work alongside you in this industry. Thank you for supporting our industry at an incredibly challenging time.

That’s all for this episode of the wine news. If you enjoy this newscast and would like to see it continue, please subscribe to JancisRobinson.com. And if you have breaking news in your area, please email news@jancisrobinson.com.

This is a transcript of our weekly five-minute news broadcast, which you can watch below. You can also listen to it on The Wine News in 5 Podcast. If you enjoy this content and would like to see more like it, please subscribe to our site and our weekly newsletter

 

 

 

 

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Samantha Cole-Johnson