With U.S. Tariffs Crippling Exports, German Wine Finds a Bright Future in China

German wine producers, squeezed by U.S. tariffs and rising costs, are finding new life in China. Once heavily reliant on the American market, Germany’s wine exports have shifted eastward, with sales to China climbing for a second straight year — a rare bright spot amid the global wine trade’s downturn.

The Trump tariffs on European wine have dealt “irreversible damage” to Germany’s wine industry, according to Christian Schwörer, secretary-general of the German Winegrowers’ Association. 

Once one of the country’s most important export destinations, the U.S. market has all but collapsed under the weight of sudden tariff hikes. But amid the bleak trade data, one market is quietly gaining strength — China.

Speaking to Welt am Sonntag, Schwörer said the U.S. government’s 15% tariffs, combined with rising storage and logistics costs, have made it nearly impossible for producers to pass on costs to consumers. “Exports of German wine to the U.S. have suffered enormously,” he said, adding that the market will likely never recover to its former level.

Since August 2024, the U.S. has imposed punitive tariffs of 15% on wines from the European Union, which together accounts for 27% of the EU’s total wine export value. German exports to the U.S. reached €63 million last year, about one-sixth of total industry exports. Although volumes fell slightly, price increases helped offset some losses. Even so, the German Wine Exporters Association (VDW) warned that the tariffs would cause “serious and lasting economic damage” to European producers.

Chinese Market Shows Two Consecutive Years of Growth

Amid U.S. trade uncertainty, many German wineries have started looking eastward, with China emerging as a key alternative. Schwörer noted that promotional efforts in emerging markets are beginning to pay off, with exports to China rising around 8% year-on-year.

Multiple indicators point to a surge of interest from German wine exporters in the Chinese mainland market. At this year’s ProWine Shanghai (November 12–14), 51 German wineries will exhibit under the official German Pavilion, joined by six independent German participants — bringing the total to a record 57 exhibitors, up 73% from 33 last year.

Chinese customs data compiled by Vino Joy News also reflect the upward trend. From January to September 2025, China imported 4,052,453 litres of German wine worth US$20.49 million — a 13.4% increase in volume and a 2% rise in value over the same period in 2024. The faster growth in volume suggests more affordable German wines are entering the market.

Notably, this marks the second straight year of growth for German wine in China, indicating healthy inventory turnover and expanding importer participation.

This growth stands out in a sluggish market. Overall wine imports to China in the first nine months of 2025 were just 60% of the same period in 2019, as many exporting nations continued to see declines. Against this backdrop, Germany’s steady rise is striking. 

The shift reflects changing consumption habits in China. With a weaker economy dampening business dining and gifting, younger and female consumers are driving a new wave of casual drinking. Light, aromatic, and lower-alcohol German white wines — especially Rieslings — fit neatly with these evolving tastes. Importers have seized on this opportunity, pushing German Rieslings into e-commerce, restaurants, and wine bars across the country.

Branding Efforts Help German Wine “Break the Circle”

Beyond market timing, Germany’s steady presence in China owes much to the German Wine Institute’s long-term promotional efforts.

Each summer, the German Wine Institute (DWI) runs its signature campaign “Summer of Riesling” (无雷司令无夏天) which has become a powerful brand event after 11 consecutive years. The campaign blends online and offline marketing to position German white wines as stylish, approachable summer drinks.

This year’s edition, held from August 22–24 at Shanghai’s Xintiandi, featured over 100 German wines in a pop-up tasting event co-hosted with lifestyle platform Xiaohongshu (little red book). The festival sold 2,500 bottles and poured over 8,000 glasses in just three days. Online engagement extended its reach, with the campaign hashtag #无雷司令不夏天 generating over 3.12 million views— a 600,000 increase from July — and related hashtags exceeding 40 million views overall.

The campaign also expanded nationwide, covering 25 cities, 137 restaurants, and more than 70 retail and e-commerce outlets. At Metro stores nationwide, consumers could taste Rieslings through five-week in-store activations, further solidifying awareness of the category.

Through consistent branding and market localisation, German wines have transitioned from a niche product to a fashionable lifestyle symbol among Chinese consumers.

A Model for Others

The success of German Riesling in China reflects both changing consumer dynamics and the payoff of a grounded, long-term strategy.

Traditionally seen as a semi-luxury product tied to business dinners and gifting, wine in China has proven vulnerable to economic swings. In contrast, German Riesling’s focus on everyday enjoyment, affordability, and connection with younger audiences has created a more resilient foundation.

It’s a shift that offers lessons for other wine regions. As China’s market matures, success may no longer depend on prestige or price tags, but on brands that can speak the language of everyday life — and connect authentically with a new generation of drinkers.