0031 GMT - Jefferies analysts Michael Simotas and Naveed Fazal Bawa are striking an upbeat tone on Aussie-based vintner Treasury Wine after Trump announced across-the-board 10% tariffs on many countries. Australian and New Zealand imports will be subject to the 10% rate, but EU imports will be subject to a 20% rate, meaning that Treasury Wine could face less competition from European winemakers in the U.S. The analysts note that Treasury is already insulated somewhat from the tariffs, given that much of the company's wine sold in the U.S. is produced in the U.S. One risk is that European wine no longer sold in the U.S. could be shipped to other markets, like China, and compete with Treasury Wine products there. But the Jefferies analysts aren't too concerned, saying that Treasury's marquee brand Penfolds is "a unique proposition in the eyes of Chinese consumers." Treasury shares were still down about 3.4% in recent trade to A$8.79. (mike.cherney@wsj.com; @Mike_Cherney)
(END) Dow Jones Newswires
April 02, 2025 20:32 ET (00:32 GMT)
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