In France's southern wine region, Trump's tariff threats are already killing business

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In France's southern wine region, Trump's tariff threats are already killing business
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European winemakers are losing business even before U.S. President Donald Trump unveils new tariffs. His threat of a 200 per cent markup has scared away U.S. importers.

Pierre Jauffret and Nadine Auray run the Chateau Terre Forte winery outside of Avignon, France. They have already lost a major order to the United States because of President Donald Trump's tariff threats. Grapevines across southern France's famed wine region have barely begun to bud, but the season has already turned sour for many of Europe's top producers.

Tariffs are paid by importers as they enter the United States, and since shipments are ordered far in advance and take months to arrive, it's impossible for U.S. buyers to know what they'll be paying or whether customers will be prepared to cover the extra markup.Château Terre Forte produces approximately 15,000 bottles a year — mostly red — on 25 hectares of vineyards.

After the U.S. imposed duties on European steel and aluminum earlier this month, Trump raised the spectre of the 200 per cent penalty on alcohol should the EU hit back against American whiskey. "How can you find a strategy for someone who has none — because has no strategy," said Auray, claiming it feels like producers are living on "quicksand" with all the uncertainty.

In trying to fight back against Trump's tariff measures, Canadian and European governments find themselves joined in a common cause — but not necessarily one they are inclined to fight together. Marin Stoffer, with champagne maker Roger-Constant Lemaire, says his operation, based not far from the French city of Reims, is one of them.

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