How high are the US criminal tariffs out of German wines? This question is currently driving winegrowers in the Moselle growing area like no other. “It is a grueling uncertainty,” says winegrower Florian Lauer from Ayl an der Saar. Does the currently ten percent that arise when importing into the United States? Will it be 20 or 25 percent? Or 0 percent?
The winemakers look at August 1st. This is the new date that US President Donald Trump has announced for the tariffs. They had been exposed to three months: the deadline was actually expired on July 9th. The EU Commission has been negotiating Washington in the customs dispute for a long time – the outcome is still open.
The uncertainty brakes Lauer’s US export business. “We sit on glowing coals,” he says. He has a basement full of wine that should go to the USA. The importer had put the transport on hold: “All the time, it is afraid that the goods are on the water that will be raised,” says the winemaker, the winner, the member of the Association of German Predict Winges (VDP).
“We don’t earn anything at 25 percent”
Around 30 percent of his wines go to the United States. “That’s about 30,000 bottles.” If customs duties of 25 percent come now? “Then that would be a bitter blow for us. Then we don’t earn anything. Then the margin is gone,” he says. The current 10 percent would still go “teeth grinding”. Lauer imported into 16 more countries. “But the USA is our most important market.”
He hoped that the three -month deadline for the customs survey would be extended again by two or three months. This also assumed importers in the United States because negotiations with the EU have not yet ended, says Lauer.
The Moselle cultivation area is particularly affected by US criminal duties. With around 6.3 million liters, almost half of all German wines (13 million liters) come to the USA come from the Moselle, as the head of the wine industry at the Trier Chamber of Commerce and Industry, Albrecht Ehses says. The United States is the most important foreign market for the Moselle winemakers.
Wine plays “a special role” during negotiations
The wine should “not get under the bikes in the negotiations between the EU and Trump,” says winemaker Johannes Selbach in Zeltingen-Rachtig on the Moselle. There is a strong lobby in the USA against tariffs on wines from Europe. The so-called Three-Tier system (three-step system) is in the USA, a legally required sales model for alcoholic beverages.
It consists of three levels – importer, wholesaler and retailer – and make sure that the product price on the way to the customer is increasing several times – and thus earned many. “With wine, the added value is more than 75 percent with the Americans,” says Selbach from the Selbach-Oster winery, which belongs to the Association of German Wine Exporters.
There are currently 17 percent in the room
So that means: if the USA adds to a custom at wine, not only the suppliers in the EU are annoyed, but the entire wine industry in the United States. “That is why the wine plays a special role in the negotiations.” You don’t have to negotiate that long, says Selbach. According to his information, the wine had just been removed from the package in the EU negotiations. “This is fatal, he has to go back.”
Otherwise tariffs of 17 percent are currently in the room. “It hurts and how it hurts.” In the worst case you could live with 10 percent: “But that’s bad too.” Before that, he had assumed that – if you negotiate smartly – there could be 0 for the wine.
Selbach exports a large part of his wine to the USA. There are also around 40 companies for which he takes over the export. Unlike with a winemaker Lauer, his export business continues. “We loaded a lot. And we are waiting for new orders next week.” The uncertainty is of course further stressful. “We all live in the mouth of our hand.”
From 30 percent wines would almost be unsalable
“With a ten percent punitive tariff, we may still get away with a blue eye,” says VDP member Ernst Loosen from the Mittelmosel. “30, 40 percent or more would make imported wines almost unsalable.”
The penalty of 25 percent in Trump’s first term in office had already had a significant impact on the sale of the wines in the United States, since prices for consumers had increased by 50 percent, reports Loosen. “These huge price jumps had enormous effects on the sale of the wines.”
Especially in the American three-stage system, every additional burden on already high prices is already leading, says Lara Haag from the VDP-Weinut Castle Lieser. “Further punitive tariffs would massively affect sales. In an already highly competitive market, this risks losing market shares – like many other export -oriented wineries, this would significantly affect us.”
VDP: The tariffs meet all member companies
“The tariffs meet all of our member companies-whether small family wine goods or larger producers-that have built up close relationships with the US market for years,” says Theresa Olkus from the VDP. At the same time, they also significantly restricted the diversity and availability of German top wines for American importers, restaurateurs and dealers. “Damage occurs in both directions.”
