France’s iconic wine and spirits industry is bracing for a major financial blow, as the United States prepares to implement a 15% import tariff on these products starting August 7.
The potential levy, part of a broader wave of trade measures introduced by the US, threatens to slash France’s annual wine and spirit exports by a quarter, with projected losses totaling EUR 1 billion (USD 1.1 billion), according to the Fédération des Exportateurs de Vins & Spiritueux de France (FEVS).
The move not only places immense pressure on the French economy but also endangers approximately 600,000 jobs tied directly to this sector. Industry leaders are urgently calling on French and EU authorities to intensify efforts in securing an exemption.
A Last-Ditch Diplomatic Push
Gabriel Picard, President of FEVS, emphasized the urgency: “The situation cannot remain as it is. It is vital that France and the European Union actively engage with us to very concretely support our sector.” Picard acknowledged current diplomatic efforts but warned that time is running out.
France’s Foreign Minister Jean-Noel Barrot confirmed ongoing negotiations, stating on France Inter radio, “We want to obtain new concessions, guarantees on wines and spirits.” The EU, supported by influential figures including LVMH founder Bernard Arnault, continues to press for a deal that would reinstate previous trade terms for the wine and spirits sector.
Economic Headwinds Already Brewing
The tariff threat comes at a time when the global wine market is already under stress. In 2024, global wine production dropped to a 60-year low, yet demand has declined even more sharply, creating a global surplus and driving prices down. The US remains a key market for European wine, accounting for nearly 30% of EU wine exports last year. A 15% tariff would disrupt this vital trade channel, harming both European exporters and American importers, retailers, and consumers.
Voices from the Industry
Speaking on Bloomberg TV, Samuel Masse, president of the European Confederation of Independent Winegrowers, warned of the ripple effects: “The impact will be huge also on the US market… This will affect US consumers and US businesses.” Masse called for wine and spirits to be added to the exemption list, stressing the mutual interdependence between US demand and European supply.
The Stakes: Economic, Cultural, and Strategic
The wine and spirits industry is not just a pillar of France’s economy — it is deeply intertwined with its cultural identity and international influence. Beyond France, the EU sees this sector as symbolic of its broader trade interests. The coming days will be crucial as diplomatic channels remain open but uncertainty looms.
Should the tariff take effect, the consequences could extend well beyond Europe’s vineyards — altering consumer behavior, disrupting supply chains, and adding fuel to already tense global trade relations.
Source: Bloomberg