Aussie winery Sirromet toasts new markets as Trump tariffs uncork opportunity

Donald Trump’s threatened 200 per cent wine tariffs could leave European producers with sour grapes while giving Australian wineries, like Sirromet, a chance to uncork new export opportunities.

Aussie wineries including Mount Cotton’s Sirromet are waiting to gauge the side effects of any possible US-imposed trade tariff on wine from Europe. Pictures: Sirromet

A threatened 200 per cent tariff on European wines into the US could create new opportunities for Australian winemakers, including Queensland’s Sirromet Winery at Mount Cotton.

US president Donald Trump made the threat in response to the European Union’s planned 50 per cent tariff on American whiskey.

With higher US tariffs making European wines significantly more expensive, Australian producers may find themselves in a stronger position to expand their exports to new markets.

Australia already has a free-trade agreement with the US, meaning its wines do not face the same trade barriers as European competitors.

However, Sirromet, one of Queensland’s most prominent wineries, which produces a range of wines, including Shiraz, Chardonnay, and sparkling varieties, is looking away from US markets with great import prospects in Asia and is now ready to break into the India market.

Australian winemakers, including Sirromet, a leading exporter, are closely monitoring the impact of Trump’s threat.

The proposed tariffs, aimed at reducing trade imbalances, could shift global wine trade dynamics and create opportunities for non-European producers such as Australia.

Sirromet director of sales Eric Yu and the winery’s chief executive Risko Isic say their exports are also well placed in Asia. Picture: Sirromet

Sirromet director of sales Eric Yu said although the proposed European tariffs could benefit Australian wines in the US market, the winery had already strategically pivoted to focus on Asia due to past challenges in the American market.

“The varying alcohol regulations across states made our direct-to-consumer home delivery model particularly difficult to navigate,” Mr Yu explained.

“Before we withdrew from the US market, our primary exports were Pinot Grigio and Cabernet Sauvignon.

“However, we now see significant opportunities in markets such as Korea, India, and southeast Asia, where we can leverage our existing export and tourism networks.

“But regarding re-entering the US market, we remain open to all opportunities.

“If conditions improve or new partnerships emerge that align with our strategic goals, we will certainly consider expanding back into the US,” Mr Yu said.

Beyond the US, Sirromet is also keeping a close eye on China.

Australian wines, including those from Sirromet, are popular in Japan and China. Picture: Sirromet

While trade relations between Australia and China have been strained in recent years, signs of easing restrictions and reduced trade barriers have presented new growth opportunities.

The first shipments of Australian wine to China after four-year trade sanctions were lifted, departed from Sirromet winery in May last year.

“In addition to these emerging markets, we are closely monitoring developments in China, which remains one of our established markets,” Mr Yu said.

“The ongoing trade tensions between the US and China present an interesting dynamic.

“As Beijing targets US agricultural exporters in response to increased tariffs, Australian farmers are already benefiting from increasingly favourable trading terms.

“This shift could also positively impact demand for Australian wines in China, as Chinese consumers may seek alternatives to US products.

“Our CEO Risko Isic recently returned from a successful trip to India, and we believe this market holds great potential for Sirromet, both in terms of exports and tourism,” Mr Yu said.

■ Sirromet, which is also a well-known music venue and is hosting Swedish pop rock duo Roxette this weekend, is also expanding its footprint in India, an emerging market with a growing appetite for premium wines.