China’s tariff on American wine will mean ‘lost market share for years to come’

26th March, 2018 by Natalie Wang

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The Wine Institute of California has responded to news of Chinese government’s proposed 15% tariff on American wine, warning that the policy could have a, “significant negative impact on the future growth of wine exports to China,” which could result in “lost market share for years to come” for American wine producers.

Following news from last Friday that the Ministry of Commerce is planning to impose 15% tariff on American wine as part of its retaliation against the Trump Administration’s decision last week to levy tariffs on about US$50 billion worth of Chinese imports, in a statement sent to dbHK today, Robert Koch, CEO of the wine institute, said: “Chinese retaliation against US wine would put our producers….

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4 Responses to “China’s tariff on American wine will mean ‘lost market share for years to come’”

1. pete says:

   March 26, 2018 at 6:24 pm

   I think this is a reason for USA producers to make wine which is sea aged in tanks http://www.seaagedwine.com do this this will mean bigger sales for USA wine producers in the USA. At the moment wine aged direct in the sea at depth is not allowed in the USA.

   Reply
2. Jay says:

   March 26, 2018 at 11:06 pm

   ……..right now we are loading containers to ship to China to beat the due date. Two birds in hand better than one in the future bush.

   Reply
3. Klark Kent says:

   March 27, 2018 at 3:48 am

   it will result in the loss of market share for the “average” Chinese consumer. However, U.S. wines and spirits price points are in no way a match for domestic wine and spirits in the Chinese market anyways. I think that this premium might end up becoming further enticing to a new or unintended target of Chinese consumers that enjoys making large ticket purchases at the aim of being a status symbol or “showing off” their wealth. Remember the austerity measures that had been taken to curb excessive spending and its impact on the Cognac industry in China had adverse effects too.

   Reply
4. DamonM says:

   April 2, 2018 at 9:38 pm

   This will be a killer for all but those wineries at the very top end of the pricing spectrum. Yes, Opus One can weather the storm (although there are plenty of other options for Chinese consumers with similar “cache”) but the growing mid-priced market will be absolutely crushed. For example, sales of Aussie wine into China was up +40% in 2017, and news like this will only continue to fuel growth of Aussie wine into the Chinese market. I imagine other nations will also benefit.

   Reply