Political noise, turmoil in wine market

Political noise, turmoil in wine market

While the world was startled last weekend by Donald Trump's depredations of Venezuelan dictator Nicolás Maduro by troops, the US wine sector has long been experiencing the effects of an unstable political climate.
Text: Ingrid Larmoyeur (The Wine Institute) | Image: Unsplash

In California, the heart of US viticulture, the effects are becoming increasingly visible. Some vineyards are even being uprooted, while others are forced to remain unworked. Not because the grapes no longer deliver quality, but because there is simply not enough staff available. Tightened ICE policy on labour migration has led to the disappearance of many seasonal workers, while viticulture depends heavily on manual labour.

On top of that comes the impact of Trump's trade wars and import tariffs. US wine is becoming harder to sell in several markets. Think boycotts in countries like Canada, but also a growing reluctance among European consumers. Not because of the wine itself, but because of a broader dislike of the US as a trade and political partner. Fewer exports mean fuller cellars, lower yields and pressure on producer prices.

The result: wineries postpone investments, vineyards are less intensively maintained and some producers choose to quit altogether. Smaller and medium-sized wineries in particular feel this, even though it is they who provide regional diversity and individuality.

What happens in Washington carries through to the vineyard. Wine turns out not to be a stand-alone luxury product, but agriculture, people work and world trade all in one.

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