Nearly a year has passed since the beginning of the U.S. - China trade war, the effects of which have rippled throughout American agriculture and consumer goods industries. But it’s not just soybeans and tech that are feeling the effects. It’s also Michigan wine.
Since the tariffs began, there’s been nearly a 25-percent decrease in American wine purchased in China. Wine industry officials say that number is only expected to grow.
Michael Kaiser is the Vice President of WineAmerica. He said skyrocketing tariffs have nearly doubled the price of American wine in China.
“Because of all the new rounds of tariffs, they’re 93%. So, if you hypothetically have a $100 bottle of wine, it’s a $93 markup on that. So it’s really been kind of devastating in terms of cost. The Chinese market is a pretty big market.”
Kaiser said although California wineries may have to return unsold product to the United States, small wineries - like those in Michigan - have been particularly discouraged from exporting to China at all. He said prior to the tariffs, there was a rapid growth in Chinese consumer taste for niche product, like Michigan cherry wine.