Vineyards are sending cases to the US in anticipation of tariffs prompting a shutdown
EL CIEGO – The pink titanium roof looks like a giant flamingo dwarfing the nearby village.
The eye-grabbing luxury hotel dreamed up by “starchitect” Frank O. Gehry put the Marques de Riscal winery on the map.
Today it is perhaps the best-known winery that produces Britain’s favourite Spanish wine.
Modern architecture Marqu_s de Riscal Hotel, architect Frank Gehry, Elceigo, Alava, Basque Country, northern Spain. (Photo by: Geography Photos/UCG/Universal Images Group via Getty Images)
Marques de Riscal in Basque Country, northern Spain (Photo: Getty)
However, Rioja and other Spanish wines are under threat after Donald Trump proposed enforcing tariffs of up to 200 per cent.
Trump said last week the tariffs would be imposed on European wine, Champagne and spirits if the European Union goes ahead with a planned 50 per cent tariff on American whisky.
Winemakers and importers said a huge tariff on their products would shut down the European wine business in the US.
Last year, Britons drank 32 million litres of Rioja, a rise of 12 per cent compared with 2023, bucking the trend for red wine which is declining worldwide. It is the most important market for the region’s winemakers.
José Luís Lapuente, director general of Rioja D.O., the ruling body of Rioja winemakers, said in a globalised world politicians and businesses should build bridges.
“Obviously, the United States is a very important market for us. It is our third-biggest export market, which represents 10 per cent in terms of volume and 15 per cent in terms of value so we are worried about this prospect,” he told The i Paper.
“But we must not forget that we sell wines in 136 countries and the US represents 4 per cent of our volume of sales around the world so it is a relative problem. We hope that wine does not become a symbol for exchanging blows.
“In a globalised world where we are no longer self-sufficient and cannot design an autocratic regime, what we have to do is build bridges.”
Protos, whose winery near Valladolid in northern Spain was designed by the late British architect Lord Richard Rogers, sells its distinctive Ribera del Duero wine in UK supermarkets.
Protos winery, overlooked by a castle (Photo: Protos)
As soon as Trump was elected, Protos hedged its bets by sending stock to the US in case tariffs were imposed. It has enough stock there to last six months.
Other Spanish wine companies are doing the same, according to a report by Reuters last month. In the US, companies are importing auto parts, Italian parmesan cheese and French cognac to prepare for a possible trade war.
“If the US imposes tariffs of 200 per cent, we will have to leave the market,” said Carlos Villar Bada, chief executive of Protos, told The i Paper.
“We have spent many years building up our operation there and it would be a big shame. It is the second biggest export market for us after Mexico. The UK is the 14th export market.”
Cava has long been a favourite with British drinkers, but since the arrival of Prosecco, sales in the UK have fallen.
The bubbly is made in Catalonia, the wealthy northeastern region of Spain, and depends on its export market.
Belgium is now the biggest export market while sales in the UK fell by 11.66 per cent last year compared with 2023. Overall, international sales dropped year-on-year 18 per cent in 2024.
Javier Pagés, president of the Cava D.O., the ruling industry body for the fizzy wine, said he hoped that the US did not impose tariffs.
“Potential tariffs for the wine business are something that causes us uncertainty. It is something that is not welcome at all. What we want is fair trade and no tariffs so that wines can be enjoyed so French wines and Spanish wines can travel around,” he said.
“We have invested a lot of time and money in the US so these Trump tariffs will destroy all that work. Hopefully, it causes us some uncertainty, but it is not definitive. I hope that they will not go ahead.”
Pagés stressed that the US consumer will lose out if European wines cease to be sold in the U.S.
Makers of the fizzy wine depend on exports as 65 per cent of cava is exported.
Belgium is the largest foreign market, followed by the US then the UK.
Pagés said just below 10 per cent of exports went to the US, followed by Britain, which accounts for between 7-8 per cent.