China remains the fastest-growing wine market in the world and will soon be second only to the US in terms of the total value of wine sales. US wine exports to China have grown by 450% over the past decade, but in 2018, US wine exports to China declined by 25% due to the ongoing trade dispute between the two nations. Between April 2018 and May 2019, China increased tariffs on US wine imports a total of three times for a compounded tariff and tax rate of 91%. China has also imposed tariffs on other prominent wine producing nations such as France, slowing imports from the EU. At the same time, however, we’ve observed a dramatic uptick in wine exports to Hong Kong and Singapore, two traditional trade partners with China. The Chinese appetite for top American and French wines shows no sign of abating, so despite the developing trade war between China and the West, we believe that China will continue to exert a considerable influence on supply.