Farmers across the US are worried about retaliatory tariffs from China. California's thriving wine industry fears its customer base across the Pacific could shrink as Mark Niu reports.
At tasting rooms in California's Napa Valley, customers enjoy some of the best wine produced in the United States. Enjoying wine On hearing news that China could slap tariffs on California wines, some expressed concerned about a possible trade war with this country's biggest trading partner.
RYAN BJORKQUIST WINE ENTHUSIAST "China's a big emerging market for California wine and everything is related-whether it's steel products or aluminum, whatever. Everything does have a cause and effect. So, whether it's electronics or wine, an emerging trade war. I don't think is good for anybody."
ANGELA DILAURA WINE ENTHUSIAST "The Chinese market-they can buy wine from Europe, they can buy the wine from South America, they can buy wine from the United States. There are a lot of options and in this type of global economy it's important that the United States remains competitive."
MARK NIU NAPA VALLEY, CALIFORNIA "Napa Valley is the most famous winemaking region in the United States. It's composed of 225,000 acres of land and responsible for just 4% of the total volume of California Wine. But, it produces about a third of the total value."
MICHAEL HONIG PRESIDENT, HONIG WINE "We're at the top of the luxury pyramid. And there's not that much production, so not that many consumers. So, every time you go up in price, there's fewer and fewer people that are able to afford those products."
Honig is a third generation family vineyard. It was also one of the first to enter the China market more than a decade ago. Since then, Michael Honig and his team have increased exports to China tenfold. He's also seen an increase in Chinese tourists coming to his tasting room-ordering bottles shipped back homes to China through the delivery service Gliding Eagle. The tariffs would make that pricier too.
MICHAEL HONIG PRESIDENT, HONIG WINE "So, if I sell something for a dollar. By the time it reaches the port in China it's market up 50 cents, so it's $1.50. The new price would go to $1.65. Now you have countries, a great example is Australia, which next year 2019, their tariffs and duties go down to zero. So we are trying to compete not only with other California producers, but wineries from around the world."
Currently only about three to four percent of Honig's wine are exported to China. Napa Valley growers want a bigger share of China's growing wine market-and don't want U.S. tariffs to get in the way. Mark Niu, CGTN, Napa Valley, California.