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Coronavirus and US tariffs uncertainty hit Bordeaux's share of trade

Published:  17 February, 2020

Bordeaux’s share of trade fell to a record low last week with sales hit by Coronavirus and US tariffs uncertainty. 

In value terms, Bordeaux’s share of trade slumped to 38.3% in the week ending 13 February, down from 48.8% the previous week, according to Liv-ex, which represents the classified growths segment of Bordeaux production (share of trade by value week ending 13 February 2020).

Bordeaux wines are popular in Asia and with the outbreak of Coronavirus, demand continues to falter,” Liv-ex said.

US buying also continued to dampen as the market awaited further announcement from the United States Trade Representative (USTR) on Airbus related tariffs (released late Friday), it added.   

Burgundy meanwhile picked up the slack with its share of market up to 27% from 11.8% the previous week, led by large parcels moving around Europe. 

Six weeks into 2020, Italy and the US were consistently obtaining more trade share on a weekly basis, with the two regions accounting for 18.5% and 5.3% respectively this week, whereas their 2019 averages were 8.8% and 2.3%. They have yet to fall below those numbers in 2020.

Late Friday, the USTR announced it has decided to maintain the 25% tariffs imposed in October on French wine, Scotch whisky, Italian cheese, and dozens of other agricultural products in response to its more than decade-old spat with the Netherlands-based Airbus. 

The 25% tariffs that are being maintained are targeted to still wine with an alcohol content below 14% that's produced in France, Germany, Spain, and the UK. Italian wine, as well as all sparkling wine, is spared. 

The tariffs also impact single-malt Scotch whisky, whiskey from Northern Ireland, and liqueurs and cordials from Germany, Ireland, Italy, Spain, and the UK.