With President Trump threatening a 200% tariff on EU wine and Champagne, English sparkling producers could see new opportunities in the US market. Ruth Simpson, co-founder of Simpsons' Wine Estate, tells Sophie Arundel why it will be keeping a careful eye on the constantly unfolding issue.
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.”
'It is early days'
However, not all English producers believe the tariff talk has had any drastic impact just yet. Ruth Simpson, co-founder of Simpsons’ Wine Estate based in Elham Valley, noted that while her company has seen growing interest and uptake in the US, this trend began before the tariff discourse took over the headlines. “It has not been altered by the fact that Trump has now announced the proposed 200% tariffs on European Champagne and wine imports as yet, but it is early days,” she said. “We will just be extremely careful from now on not to ship too much wine at any one time to the US, in case the tariff situation changes while in transit”
.
Simpson also pointed out that there is still uncertainty over whether tariffs will extend to UK wine and that any potential gains must be weighed against the unpredictability of US trade policy. “There will always be a risk associated with tariffs, which will depend on completely unrelated geopolitical factors,” she said.
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.
For Simpsons’ Wine Estate, maintaining strategic flexibility is key: “We will be keeping a careful eye on the direction of travel and remain prudent as to how much wine we send to the market at a given time, in case of changes to tariffs while product is in transit,” Simpson explained.
The perspective surrounding English sparkling
In terms of consumer awareness, Simpson sees one of the greatest challenges as positioning English sparkling wine alongside Champagne. “The initial challenge will always be explaining why English sparkling wine is as good as, if not better than, Champagne and justifying the price point. This process has already begun in many states and the audiences we have come across so far are very receptive,” she said.
She also highlighted the potential influence of major players such as Jackson Family Wines, which recently invested in English winemaking: “The installation of the large US company Jackson Family Wines in the UK is a huge opportunity and will undoubtedly help further raise awareness once they begin releasing their English wines.”
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.”
Optimism despite uncertainty
However, Simpson remains optimistic about the future of English sparkling wine in export markets: “Export offers huge opportunity for growth, but more producers are waking up to that, so there will be more competition in certain export markets. The important thing to ensure is that the increase of product in those markets does not drive the price down. At Wine Paris the level of interest in our category as a whole was huge, but it was also reassuringly apparent that our products are viewed as a premium offering.”
With export making up almost 50% of Simpsons’ sales, Simpson believes the long-term outlook remains strong, regardless of tariff uncertainty. “We therefore still believe the export future is bright!” she concluded.
