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Yecla wine is the first casualty of Trump's tariffs
The US plans to raise tariffs on wine from Spain and Europe by 200%
Although they haven’t even been imposed yet, the United States’ threats to raise tariffs on European wines by 200% are already having an impact on the Region of Murcia. The uncertainty generated by President Donald Trump’s policy is being felt on both sides of the Atlantic and in Spain, Yecla has witnessed the first casualty.
Famous Yecla winery Antonio Candela has just had a very large order from the US cancelled but interestingly, the same business has also noticed that other American clients are actually increasing their orders to try to stock up before the new customs duties come into effect.
Antonio Candela estimates that the impact on “a container of wine would reach €100,000 in taxes,” an amount that would make it impossible to compete with producers in countries like Australia, Chile or Argentina.
Wine exports from the Region of Murcia to the US reached nearly €24 million last year, representing 15.22% of total foreign sales. The bulk came from wineries under the Jumilla, Yecla and Bullas designations of origin but overall, more than 96,000 tonnes of vino were shipped to 140 countries on five continents.
Although the regional production of wine and other alcoholic beverages destined for the United States is insignificant within the total volume exported, the 200% increase in tariff rates that Trump plans to implement in early April would essentially exclude the North American market.
In what’s increasingly feeling like a tit-for-tat scenario, Trump announced the wine tariff after the EU imposed trade sanctions on goods like bourbon, Harley Davidson motorcycles and Levi’s jeans. But Brussels only introduced these measures after the US President unleashed tariffs on steel and aluminium from Europe.
The manager of the company that owns the Antonio Candela and Barahonda wineries in Yecla explained that the tariff war launched by Donald Trump is causing confusion in the markets and provoking mixed reactions among importers.
Antonio Candela, who is part of the fourth generation to lead the company, now believes that the winery is facing the possibility of losing the US market altogether when “it's about to turn 100 years old. Our main market is the United States,” he said.
However, winegrowers in the Region find it very difficult to find an alternative destination for Murcia wines. Mr Candela pointed out that the company also exports to some 30 countries around the world, but warned that “finding new markets takes time. Replacing one market with another isn't that easy.”
Facing this situation, he hopes that “the people of Murcia will realise and appreciate what we produce here. In Murcia, we need to value our products more.”
For their part, the Jumilla and Bullas designations of origin have not been informed of any cancellations or suspensions of orders.
Image: Freepik
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