The president of the California Association of Winegrape Growers has called for the US wine industry to take a different view on import tariffs and to identify the potential benefits to the sector.
In an article written earlier this month, Natalie Collins said that “tariffs are meant to aid in levelling the playing field” for domestic companies in their own markets. She noted that, off the back of President Trump’s tariffs pledge, US wine importers and distributors have stolen the narrative of what could potentially prove beneficial to the country’s wine industry.
“Current trade policy ignores the market distortions created by foreign production subsidies and unfairly undermines domestic producers, who are struggling to compete against these heavily subsidised imports and the lower costs of production abroad,” Collins wrote.
“These hypothetical tariffs are not aimed at crippling industries or retaliating against countries for unrelated matters. They are modest and intend to address the competitive advantages created by foreign subsidies and lower production costs.”
Collins added that the US produces less wine than it consumes, but is still seeing vineyards “being torn out en masse”. She claimed that over the last 18 months, more than 30,000 acres of vines have been removed in California.
“Instead of viewing tariffs as a purely punitive measure, what if they were viewed as a tool to ensure US producers, growers and farm workers have the opportunity to be at the table?,” she continued. “By focusing on measured, proportional tariffs, we can support California winegrape growers and wineries, while bringing focus to prioritising local industries.”
“Tariffs are not about pushing out international wines altogether – there’s room for everyone! But the narrative needs to shift. The imposition of reasonable tariffs will not prevent a consumer from buying the tariffed product, but it very well may encourage them to shop for alternatives, and in this case, those alternatives are likely to be locally grown and produced.”
Earlier this month, Spirits Canada, the Mexican Chamber of the Tequila Industry (CNIT) and the Distilled Spirits Council of the United States (Discus) released a joint-statement expressing their concerns ahead of the implementation of a 25% tariff on Canadian and Mexican imports into the US.
