US tariffs on Aussie wine would be a ‘disaster’

Tariffs on Australian wine imported into the United States would be a disaster for the wine industry, says Mitchell Taylor, managing director of Taylors Wines.

“This would be our worst nightmare as an industry in crisis recovery mode,” he says.

“It would be a disaster as the industry is just getting over the 218 percent punitive tariffs of China three years ago.

It is not looking good for Australian winemakers with our steel and aluminium failing to win an exemption from the across-the-board 25 percent tariffs.

Trump has issue an executive order for officials to review trade policies by 1 April.

Mitchell says it is very dangerous to have the world trading environment on tenterhooks as it creates uncertainty and lowers consumer confidence.

“The global wine industry needs certainty and confidence,” he says.

“The LCBO is stripping the USA wines off their shelves, and while this could present an opportunity for Australian wines in the crossfire, there is no confidence in ordering or buying with all this uncertainty in the global wine markets and across the supply chains.

“Just as we are about to finish a low yielding yet high quality vintage in the Clare Valley, we need support and guidance from our government in stabilising these trading relationships to restore confidence and opportunities in these vital export markets for the Australian wine industry.”

The United States is the Australian wine industry’s third-biggest export market after Mainland China and the UK.

“And it has potential grow,” Mitchell says.

Australia exported $325 million of wine to the US in the 12 months to 31 December 2024, according to Wine Australia.

This comes at a time when Australian wine in the US is already struggling, with exports down 10 percent last year.

In the same period Australian wine exports to Canada rose nine percent to $156 million.

The tariffs have increased tensions between Australia and the US with Trump now refusing to take Albanese’s calls.

Treasury Wine Estates shares dropped below $10 on Wednesday 12 March for the first time since April 2021, finishing at $9.74.

Australian winemakers were left reeling when China introduced huge tariffs on Australian wine in 2020.

The tariffs were lifted in 2024 and Australian wine exports to China have rocketed back to $907 million.

However, the wine industry remains cautious about China with global trade in turmoil as America rolls out its America-first policy.

Meanwhile the US and Canada are going head to head with tariffs.

America has slapped tariffs on Canada imports including steel and aluminium.