Amid growing global trade tensions and newly imposed US tariffs, Austria’s wine sector is mobilizing to safeguard its exports and broaden its international presence. With the United States reintroducing tariffs under President Donald Trump’s second term, industry leaders, including the Austrian Wine Marketing Board (AWMB), are taking swift action to mitigate the potential impact on Austria’s high-value wine exports.
Rising Tariff Pressures and Economic Impact
The imposition of tariffs on European goods has placed the Austrian wine industry in a precarious position. The United States, Austria’s second-largest export market by value, received 3.3 million litres of Austrian wine in the past year, worth €19.8 million. Although this accounts for just 5% of Austria’s wine export volume, it represents 8.5% of total export value — underscoring the US market’s significance for Austria’s premium wines, which command an average price of €6 per litre.
Austrian Wine Marketing Board CEO Chris Yorke emphasized that any tariff regime presents a challenge, particularly amid unpredictability in US trade policy. While initial proposals of a 200% tariff on alcoholic beverages were ultimately abandoned, a 20% blanket tariff on EU goods was announced in April. Though temporarily suspended for 90 days, a 10% baseline tariff remains in effect, contributing to ongoing market uncertainty. The AWMB is currently planning for a worst-case scenario involving the full 20% tariff taking hold.
Defending the US Market
Despite the challenges, Yorke expressed confidence in the resilience of Austria’s wine industry, noting the enduring relationships Austrian producers maintain with American importers and distributors. These partnerships, forged over decades, are expected to play a critical role in sustaining exports during the tariff period.
To maintain its market presence, the AWMB has launched a series of promotional initiatives across the United States. These include educational masterclasses in Washington and on the West Coast, a sommelier competition in Florida, and media and retail collaborations designed to reinforce brand recognition and demand.
In a transatlantic effort, the AWMB is also bringing American wine professionals to Austria to deepen their appreciation of Austrian viticulture. It continues to support the Karakterre Wine Fair, which celebrates Central and Eastern European wines in both Vienna and New York, as a platform to showcase the country’s offerings.
Expanding Beyond the US
Recognizing the need for diversification, the AWMB is significantly expanding its outreach to other key export regions. A robust calendar of events will target markets such as Germany, Switzerland, Canada, Scandinavia, the Benelux countries, the United Kingdom, and Asia. Over 300 wineries will be featured at upcoming promotional events in Canada, Sweden, Japan, Singapore, and Switzerland. These activations aim to strengthen Austria’s global wine footprint and hedge against overdependence on the US market.
Fortifying the Domestic Market
Efforts are also underway to reinforce Austria’s domestic wine consumption, especially in light of potential spillover competition from other EU countries also affected by US tariffs. The AWMB is partnering with major Austrian retailers and wholesalers to support local producers and secure their market share.
In response to broader shifts in consumer behavior, the AWMB is launching new campaigns to address long-term industry challenges. A red wine-focused promotion beginning in June aims to counter declining global consumption trends, while a year-long campaign will target younger consumers aged 20 to 35, showcasing Austrian wine’s appeal to a new generation.
Resilience Through Strategy
While no industry welcomes the complications tariffs bring, Austria’s wine sector is meeting the challenge with strategic planning, global outreach, and domestic reinforcement. As Yorke and the AWMB lead an ambitious campaign to shield and grow the nation’s wine exports, Austria positions itself not just to weather the storm, but to emerge with stronger, more diversified markets.
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