Winegrowers from Tarragona and Ebro warn that they will not be able to continue selling wine to the United States with 200% tariffs

Arnau Martínez / Anna Ferràs - Gandesa - Winegrowers from Camp de Tarragona and Terres de l'Ebre have received with "concern" the threat from the US government to impose 200% tariffs on European wines. They warn that with the 50% tax rate that Trump applied in the previous term, wine sales in the United States fell by more than a third and that taxing exports by 200% will make it very difficult to sell a single bottle of wine there. They demand more leadership and unity from the European Union to defend the sector and not to use it as a scapegoat in geopolitical fights. The exporting wineries of the DO Terra Alta, DO Montsant or DOQ Priorat are working to diversify exports, opening new marketing channels to countries in Europe, or even Asia.

The designations of origin of Tarragona and the Ebro regret that geopolitical squabbles end up having a devastating impact on their businesses and that tax rates on sectors such as wine and spirits serve to make governments "strong" in negotiations on other matters. Joan Àngel Lliberia, owner of the Edetària winery in Gandesa, in Terra Alta, has claimed that to face Trump's threat, agreement and unity are needed in defending the interests of the sector in Europe, "leadership and clear ideas". He laments "the lack of protection for citizens by the European bodies themselves", while the commissioners "fight" over the type of taxes and debate "whether to tax wine like alcohol", but "are incapable of defending it as another cultural element of the Mediterranean diet".

Five years ago, the 50% tariffs on wine in the United States could be offset by the "strength" of the Euro-dollar and agreements with distributors. But, even so, sales fell by 30% and 40%, at a time when the sector "was very affected" by the pandemic and was "fateful". Taking into account that consumption in the United States is slowed down, if a 200% tax is applied, they warn that "the fall will be unstoppable and total" and "making a mark will be very complicated". "There may be some very specific market niche that will be able to survive, but the volumes will be ridiculous, both in expensive and cheaper wines. We will all fall," predicts Lliberia, from the Edetària winery.

The DOQ Priorat considers that it would be a "problem" for the designation of origin if Trump imposes tariffs of 200% because the United States is the second most important client of Priorat wineries. The North American market represents approximately 20% of the production of the DOQ Priorat. The president of the regulatory entity, Salus Àlvarez, also acknowledges that they would have "difficulties" in continuing to sell the volume of wine they export to the United States.

New markets

Àlvarez also points out that Trump "first says and then we have to see what ends up happening", since his statements cause "uncertainty, insecurity and alarm" in the markets. DOQ Priorat states that exports to the American continent have decreased in recent years and they are focusing on Europe and the Catalan territory. DOQ Montsant also points to Asia. "The future objectives are not based on conquering the American market, but on conquering the Catalan market", says Àlvarez. Terra Alta wineries, such as Edetària, have also begun to prospect for other markets, especially in Europe, such as Croatia, Slovenia, Poland and Belarus, or even Kazakhstan.

Joan Àngel Lliberia also calls on Catalan consumers to invest in Catalan products and gastronomy. "It is the most important market that we still have to win over the DO Terra Alta and other small denominations: the gastronomy itself and the consumers here", he pointed out.