Aragonese wine is on edge over tariffs: “We had breakfast reading Twitter to see what Trump says”

In recent days, the Aragonese wine sector has experienced a new setback following the increased intensity of Donald Trump’s frenetic protectionist campaign, which advocates imposing tariffs worth 200% on European wine in the United States. According to details released this Monday, this would triple the cost of a bottle in the United States. 

At a meeting held this Monday in the Pignatelli building, the Government of Aragon, together with representatives of the Protected Designations of Origin and Protected Geographical Indications for wine and cava from the region, analyzed the impact this measure could have on exports to the United States, the second largest market for Aragonese wine after Germany. The meeting was attended by President Jorge Azcón; the Minister of Agriculture, Javier Rincón; the Director General of Food Promotion, Amparo Cuéllar; and the Director General of Aragón Exterior, Javier Camo.

A COMPLEX CONTEXT

Adding to the uncertainty surrounding the potential implementation of these tariffs is an already complex context for the wine industry, which is struggling with problems stemming from the war in Ukraine, rising production costs, and the consequences of the COVID-19 pandemic that began five years ago. 

For all these reasons, Rincón has urged the Ministry of Agriculture to convey this concern to the European institutions so that they can demand better conditions for local producers, who are potentially the victims of this situation.

The Calatayud DO exports 40% to the United States  

One of the designations of origin most likely to be affected by the potential tariff increase is the Calatayud DO, which exports 40% of its production to the United States. Its president, Miguel Arenas, expressed his concern about the American leader’s remarks after the meeting at the DGA. 

“ We had breakfast reading Twitter to see what this guy is up to. He’s threatening 200%, but we don’t know how it will be applied or to whom. It’s been a whirlwind,” lamented Arenas, who noted that President Trump had already imposed a 25% tariff on wines and spirits under 14 proof during his previous term. 

“They didn’t affect us, but at this point we don’t know,” noted the president of the DO, who also appealed to the “responsibility” of local consumers. “Local consumers can also contribute to the sector with their consumption,” he explained.  

52% OF ARAGONESE WINE GOES ABROAD

Aragon is one of the main wine-exporting regions in Spain, with an annual production of more than 30 million bottles to the United States alone. It accounts for 52% of Aragon’s total exports. “In Aragon, there are vineyards in 363 municipalities, more than 100 wineries, and more than 3,000 winegrowers cultivating some 28,000 hectares,” noted the regional minister, Javier Rincón.

In figures, as Arex’s director, Javier Camo, pointed out, the United States imported Aragonese wine worth 11.5 million euros, second only to Germany (16.78 million). Other key markets were Canada (11.29 million euros), the Netherlands, and the United Kingdom.  

NEW MARKETS AND STRATEGIES

At this time, Camo has once again called for calm but stressed the need to be proactive in seeking new markets to anticipate Trump’s policies. “They are not yet a reality, but we must be proactive,” the Arex director emphasized.

He himself pointed out that countries such as Mexico, Brazil, China, and Japan offer great growth potential for Aragonese wine, as do Canada and the Nordic countries. “Cooperation and highlighting the value of the productive sector are essential. We will review the markets monthly to react quickly and find new opportunities,” he concluded.