Trump’s tariff threat: An opportunity for English sparkling?

As President Trump threatens a 200% tariff on EU wine and Champagne, English sparkling producers could see new opportunities in the US market. However, industry experts remain cautious about the long-term trade implications. 

The potential introduction of a 200% tariff on European wine and Champagne by President Donald Trump could open new doors for English sparkling wine in the US. While the policy is intended to benefit American producers, some UK winemakers are already seeing increased interest from US importers seeking alternative premium sparkling wines. The Times recently reported that Hugo Stewart, winemaker at Domaine Hugo in Wiltshire, was reconsidering a long-booked trip to the US following Trump’s announcement. Shortly after the tariff threat, Stewart received an order from an importer in Oregon who had previously shown interest but had not acted for two years. Trump suggested the levy could be introduced in response to the EU’s planned 50% tariff on US whiskey, posting on Truth Social that it would be “great for the wine and Champagne businesses in the US.” While analysts at Bernstein noted that US producers like Constellation Brands could benefit, some believe English sparkling wine could also gain ground as American consumers look for European alternatives. Among them is Patrick McGrath, co-founder of Domaine Evremond, a Kent-based estate established with Pierre-Emmanuel Taittinger. He acknowledged that a UK exemption from tariffs would benefit British wine, but warned: “There should be no tariffs at all. It’s a disaster and we’re all in the same boat … It’s definitely not good news.”

Concerns remain

The UK wine industry remains small but is growing. According to WineGB, the national industry body, UK wine exports doubled from 4% to 8% of total production in just two years. In 2023, a record 8.8 million bottles of English and Welsh wine were sold, with the US ranking as the third-largest export market after Scandinavia. Despite the potential for increased sales, concerns persist about trade volatility. McGrath pointed to Trump’s previous 25% tariff on single malt Scotch whisky in 2019, which cost the industry an estimated £600 million before it was lifted under President Biden in 2021. Some producers fear a similar move could eventually target UK wine. “We’re seeing some people stock up now, just in case tariffs hit,” said Wendy Outhwaite, co-founder of Ambriel Sparkling to The Times. She highlighted the risks for producers exporting to the US: “The worst possible outcome would be if your product is halfway across the Atlantic and then suddenly you’ve got an unexpected 200% tariff put on it.” Looking ahead, Carsten Brzeski, global head of macro research at ING, suggested that even if Trump does not impose this particular tariff, more could follow. “Our take is really this [time] Donald Trump is much less transactional than many of us in Europe had always thought. [We expect that] he will really push through with the tariffs,” he said. While English sparkling wine may gain some traction in the US, the long-term effects of trade disputes remain uncertain. As Domaine Hugo’s Stewart put it: “With a 200% tariff, consumption would go down quite a bit, but you’re always going to get that core group of people who have got money and just want to drink Champagne.”