Slovenian winery feels pinch of US tariffs

The winery sector of Slovenia starts to feel the pinch of the U.S. tariffs as they deal a heavy blow to the industry.

Businesses in the European Union (EU) have begun to feel the effects of U.S. tariffs. Rising prices of goods have particularly affected smaller, export-driven countries like Slovenia.

The United States imported over 3.5 billion U.S. dollars' worth of Slovenian goods last year, with pharmaceuticals, machinery, and specialty food products leading the way.

In the rolling hills of Slovenia's Brda region, rows of vineyards stretch as far as the eye can see.

This land has been home to the Movia Winery for more than two centuries.

The estate produces organic wines, with 91 percent being exported, and only 9 percent sold locally in Slovenia.

The family winery of Ale Kristancic spans over 27 hectares and produces between 120,000 and 140,000 bottles each year -- almost everything for exports.

That's why the U.S. tariffs represent a real concern for his business.

"Higher taxes will never bring something positive, of course. But, that's it. We have to do our job, and it is to do wine in a serious way, in that way that somebody can buy it for a little bit higher price, or lower price," Kristancic said.

Across the European Union (EU), the U.S. remains the single biggest export market -- worth almost 590 billion U.S. dollars annually.

For small countries like Slovenia, dependent on foreign markets, the tariffs are more than just numbers on a balance sheet. They ripple through family businesses, regional economies, and the daily choices of consumers on both sides of the Atlantic.

Economists warn that while tariffs may raise revenue for Washington, they risk harming competitiveness and innovation in the long run.

"And with tariffs, they are increasing the fiscal revenues. On the other hand, this will also have a negative effect on the inflation. That means the inflation is higher than it should be in the U.S. It is not a problem of money. It's a problem of know-how, intelligence, of technical profiles. And this is not an easy thing to solve for no politician in this world," said Bojan Ivanc, chief economist of the Chamber of Commerce and Industry of Slovenia.

Slovenian winery feels pinch of US tariffs

The multilateral system is "under attack" amid global turmoil, President of the 80th UN General Assembly Annalena Baerbock warned in her remarks on Wednesday.

In her briefing on the priorities for the resumed 80th Session of the General Assembly, the UNGA president noted that the current multilateral system does not collapse all in a sudden, but "crumbles piece by piece" in divisions, compromises, and lack of political commitment.

The president called all the UN member states to defend the UN Charter and international law and promote cross-regional cooperation.

She also urged to push forward the work of the UNGA on certain critical issues with a strong majority, rather than an absolute consensus among all member states. Such act is not a failure of multilateralism, but "an affirmation of it," she said.

The foundational principles of the institution should not be eroded by appeasement, she said, calling the member states to show courage, leadership, and responsibility at the UN's "critical make-or-break moment."

"The UN needs you. Your support, your leadership, your principle, stand, your cross-regional cooperation, if we are to preserve and modernize this institution, if we are to make it, rather than break it," she said.

UNGA President warns global multilateral system "under attack"