Does the Trump tax increase the alcohol content of Bordeaux wines?

Bordeaux wine tasting -

• Because of the Trump tax on certain European products, the export of wines from Europe of more than 14 ° has tripled in one year, reveals the “Wall Street Journal” in an investigation.

• Bordeaux wines have also had to adapt to this new situation, and also favor the export of wines with high degrees of alcohol to circumvent the tax.

• For the Bordeaux vineyard, which does not want wines that are too alcoholic, it is however highly desirable that this tax does not last in order to re-establish dynamic trade with the United States.

Stronger Bordeaux because of the Trump tax on imports of certain European products?

The

, in an article spotted by the Korii site, tells how an American wine merchant was surprised to see an alcohol level of 14.02 ° on a cru offered by a Bordeaux winegrower.

The wine tax only concerns those above 14 °.

Result: By investigating, the

 noticed that the United States had imported over the last year for 434 million dollars of European wines at more than 14 °, against only 150 million dollars in previous years.

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Has the introduction of this tax had consequences for Bordeaux wines?

Absolutely.

For a year now, the Bordeaux wines going across the Atlantic have been much stronger in alcohol.

Be careful, this does not mean that Bordeaux winegrowers make stronger wines.

"Nature decides," recalls a winegrower from the left bank of Bordeaux.

If it does not give you 14% alcohol, you will certainly not provoke them, at the risk of unbalancing the wine, whereas what you are looking for in a Bordeaux is above all smoothness.

"Communication Director of the CIVB (Interprofessional Council for Bordeaux Wine), Christophe Chateau also recalls the obvious:" When the wines that are sold today in the United States were harvested, no one knew that there would be the Trump tax.

"

On the other hand, what is true is that winegrowers are adapting to this tax in order to circumvent it.

"We have some fine recent vintages which are 14.2 ° or 14.5 °", explained

Jean-François Galhaud, chairman of the Saint-Emilion wine council

at

at the beginning of November

.

These are in fact privileged in overseas exports.

"Some properties send their wines with high degrees to the United States"

The Trump tax dates from October 2019, it is the consequence of the trade war between Boeing and Airbus, and targets countries associated with the construction of Airbus.

It taxes at 25% of their value not only wines over 14 °, but also bottles of less than two liters.

A double magnum is thus not affected.

In this context, some American importers actually advise their traders to favor vintages at more than 14 °, for their exports to the United States.

"Certain properties - more on the right bank where there is more Merlot than on the left bank which is more Cabernet - decide to send their wines with fairly high degrees to the United States" acknowledges Christophe Chateau.

A 6% drop in exports to the United States

The consequence is that the American consumer ends up with wines that are stronger in alcohol to consume.

“And there was a craze for these wines at more than 14 ° it is obvious, assures Christophe Chateau, that made it possible to limit the breakage for the wines of Bordeaux.

Before the Trump tax, the Bordeaux market with the United States grew by 3 to 4% per year.

A year after the tax was introduced, exports fell by around 6%.

"There is a setback, as one would expect, but it is not a collapse either" analyzes the director of the communication of the CIVB.

It remains to be seen what will happen if the tax were to last for several more years.

“This is one of the challenges of the election of Joe Biden, knowing that it is not only wines that are taxed, and that Europe has also been authorized for a month to tax certain American products.

This situation is not due to the winegrowers, and we are sanctioned for a fault that we did not commit, therefore we are asking the government for compensation due to the drop in exports to the United States.

You have to realize that a wine that arrives in the United States at 10 euros is taxed an additional 2.5 euros, which is enormous!

»Continues Christophe Chateau.

Bordeaux wines have gained a degree of alcohol in twenty years

To date, Bordeaux wines are on average between 12 and 13 ° alcohol.

“Very hot years can give wines above 14 ° C which will be balanced, but this is still rather rare, especially on the left bank” assures a winegrower.

The 2020 vintage should be one of those hot years.

Bordeaux wines have gained about one degree in twenty years, in particular due to global warming.

But not particularly looking for wines that are too alcoholic, Bordeaux winegrowers tend to want to curb this phenomenon, rather than encourage it.

They now favor grape varieties like Cabernet Franc and Cabernet Sauvignon, which are less rich in alcohol than Merlot, which has been planted for years around Bordeaux.

For the Bordeaux vineyards, the desire is rather to control the alcohol level of its wines, the resumption of a dynamic with the American market will therefore necessarily involve the elimination of the Trump tax. 

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