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Austria: Austrian winegrowers seek solutions amid US tariff challenges

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Storyline: Austrian winegrowers, grappling with U.S. tariffs, start to explore new markets to offset potential losses. Although the United States reduced its tariffs on wine from the previously announced 200 percent to 20 percent, some Austrian winegrowers fear that it will still lead to halving U.S. orders, adding another existential threat to local vineyards already struggling with the COVID-19 pandemic and high inflation. Gerhard Lobner, managing director of Viennese winery Mayer am Pfarrplatz, initially feared losing his biggest export market entirely. While the lowered tariffs allow him to continue exporting to the United States, the Viennese businessman remains uncertain about how many customers will be deterred by increased prices. Europe exports roughly five billion dollars' worth of wine to the United States each year. If American customers stop buying its wine because of higher prices, export revenue could drop by up to 20 percent. With less American customers, Austria's capital Vienna, the world's only capital with significant wine production within city limits, will find continuing production challenging. To address these challenges, the EU Commission is helping winegrowers adapt by unlocking new market opportunities such as low-alcohol wine, which more and more younger Europeans are choosing for health reasons. Another solution is going East. Last year, Austrian wine exports increased by 11 percent to countries like Japan, South Korea and China. It is a trend many Viennese winegrowers hope will continue, with some already traveling to Beijing to meet potential buyers.. Even if he loses a considerable number of American customers, Lobner is certain his historic winery will continue to thrive, as it has done for the past 342 years, despite wars and trade wars. Shotlist: Vienna, Austria - Recent: 1. Various of Gerhard Lobner, managing director, Mayer am Pfarrplatz, walking in winery, checking on wine 2. Worker driving forklift 3. SOUNDBITE (German) Gerhard Lobner, managing director, Mayer am Pfarrplatz: "If the Americans want to build a wall around their country and only want to drink woody Chardonnay from the Central Valley in the future, then so be it." 4. Various of wine production line 5. Various of worker putting wine into carton 6. SOUNDBITE (English) Norbert Walter, president, Vienna's Chamber of Agriculture: "If there is too much wine here in Europe, the winegrowers will have a real problem, because the prices go really really down, and they have no income with this wine." 7. Aerial shot of winery 8. SOUNDBITE (German) Gerhard Lobner, managing director, Mayer am Pfarrplatz: "Yes, I do think that China is an exciting wine market. Chinese cuisine goes perfectly with it: Austrian white wine." 9. Wine production line 10. Various of Lobner sealing wine 11. Wine bottle. [Restrictions : No access Chinese mainland]

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