As the U.S. government threatens to impose substantial tariffs on European wine, Oregon’s winemakers are sounding the alarm, warning that the move could significantly harm local producers.
Why It Matters:
Oregon has long been one of the top wine-producing states in the U.S., and the looming tariffs could push prices higher, even for domestically produced wines. The ripple effects may be felt across the industry, from producers to consumers.
Concerns from Local Winemakers:
Harry Peterson-Nedry, founder of Ribbon Ridge Winery in Newberg, expressed concern that wine is becoming a pawn in international trade disputes. “Wine shouldn’t be a pawn in international push-and-shove trade competition,” he said. “It should represent a celebratory, sustainable product that brings us together at the table.”
Peterson-Nedry warned that the retaliatory tariffs would ultimately harm the entire wine industry. “This damage is not only to winery producers but to consumers and the broader network of businesses such as restaurants, retailers, and distributors,” he added.
Impact Already Felt:
Some Oregon wineries have already faced challenges due to the ongoing trade tensions. Products from local wineries have been pulled from Canadian shelves as a direct result of the tariffs. Alex Sokol Blosser, president of Sokol Blosser Winery, shared his frustration with KGW, noting that his company’s hard-earned relationships with Canadian distributors were now on hold. “All that business we worked for, and the president lit a match to it,” Blosser said.
Background on Tariffs:
The threat of tariffs intensified after the U.S. imposed a 25% tariff on steel and aluminum, triggering retaliatory measures from major trading partners, including Canada and the European Union. In response, the EU reinstated a 50% tariff on American whiskey, set to take effect on April 1. President Donald Trump retaliated by threatening a 200% tariff on European wine and Champagne, claiming that it would benefit U.S. wine businesses.
The Numbers Behind Oregon’s Wine Industry:
Oregon produced over 17 million gallons of wine in 2023, ranking just behind California, New York, and Washington, according to the Alcohol and Tobacco Tax and Trade Bureau. In 2022, the state’s wine industry contributed an estimated $8 billion to the economy, with nearly 40,000 individuals employed in the sector, particularly in the northern Willamette Valley.
Industry Concerns:
Industry insiders have raised alarms that such drastic tariffs could devastate wine importers. However, some view the tariff threats as part of a broader negotiation strategy. A White House official described the situation as “the art of the deal” rather than a genuine attempt to eliminate an entire industry. French politicians are already considering backing down on the proposed whiskey tariff, which triggered Trump’s initial response.
As the situation develops, Oregon winemakers are hoping for a resolution that protects both the U.S. wine industry and the international trade relationships that support it.
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