"... signal the determination of both sides to embark on a fresh start in the relationship"

 

A week ago, we sent you an update on the 18-months long tariffs war between the US and the EU.  At the time, we paraphrased a wise man: “This, too, shall pass”.  With President Biden having declared his intention to rebuild ties with our traditional European allies, we believed it was a matter of when, not if, the tariffs war would end.
 
Well, it happened sooner than we thought.  Barely a week later, we received the first good news since October 2019 when the last US administration imposed 25% tariffs on French wine, Italian cheese, and Irish whisky (all the good things in life, one could say).  The White House announced the US and the EU just agreed to a 4-month pause in the 18-month long tariffs war, before a lasting trade arrangement is found.  The way we read the tea leaves, the lasting agreement is already under negotiations.
 
Our phone was ringing off the hook, from customers and Bordeaux trade contacts alike, within minutes after the news crossed the wire.  Many of our friends suggested that we pop champagne to celebrate, which we gladly obliged over a long lunch.
 
To our customers, especially our buyers of Bordeaux wine futures, the news this morning was not only welcome, but timely.  We still have 2017 and 2018 vintages waiting to ship out of Bordeaux, before the 2019 vintage is bottled this summer, and the 2020 en primeur campaign starts in under two months.  The French Finance Minister, Bruno Le Maire, said it best on twitter, “Finally, we are emerging from the trade war between the United States and Europe, which created only losers.”
 
Now, with lower tariffs, we shall all be winners.