President Donald Trump's threat to impose a 200% tariff on European wines has added to the woes of wine growers who were already grappling with a decline in wine consumption. The situation in the wine industry is becoming increasingly challenging, with France even resorting to paying farmers to uproot vines due to the drop in demand.

In the Occitanie region of France, the Cave Héraclès — the country's largest organic wine cooperative — is facing surplus wine from the previous year's production, with over 200 stainless steel tanks full to the brim. The upcoming harvest is looming, but with orders from the US dwindling, wineries are struggling to find buyers for their wines. As a result, there is a possibility that excess wine may need to be turned into hand sanitizer.

Jean Philippe Julien, the president of the cooperative representing 80,000 winemakers in southern France, expressed concerns about the full tanks and the lack of buyers causing a delay in emptying them. The uncertainty surrounding the proposed tariffs by Trump is exacerbating the situation further, leaving producers in a limbo about the potential financial implications and the inconvenience of storing excess wine.

The halt in wine shipments to the US is hitting European wine businesses hard, with estimated losses of about €100 million ($107 million) weekly. The repercussions are already being felt, with American importers unwilling to take any risks of facing hefty tariffs if levies are imposed from the stated deadline of April 2nd. This uncertainty has led to wine exporters facing significant challenges as they navigate through these turbulent times in the industry.