The French wine industry is grappling with a major setback following the U.S. President Donald Trump's recent announcement of a 20% tariff on European Union products.
The new trade barrier directly impacts French wine and spirits exports to the United States, the industry’s most lucrative foreign market.
According to the Federation of Wine and Spirits Exporters (FEVS), this decision could slash up to EUR 800 million from France’s export earnings. In 2024 alone, France exported EUR 2.4 billion in wine and EUR 1.5 billion in spirits to the U.S. The FEVS warns that such a sharp decline could ripple across the industry, threatening employment and economic stability in multiple regions.
Regional Reactions: From Cognac to Burgundy
The Cognac region, a symbol of France’s global wine prestige, is among the hardest hit. Anthony Brun, president of the General Union of Winegrowers, described the situation as “a catastrophe.” He warns that in Charente, where exports form the backbone of the economy, the tariffs—combined with tensions in Chinese trade relations—could lead to widespread winery closures, especially among small and mid-sized producers.
In Burgundy, Laurent Delaunay, president of the Bureau Interprofessionnel des Vins de Bourgogne (BIVB), expressed mixed feelings. While the 20% tariff is undoubtedly harmful, it is a relief compared to earlier fears of a 200% levy. Still, the economic toll is expected to be around EUR 100 million, impacting a region that shipped nearly 21 million bottles worth over EUR 369 million to the U.S. in 2024.
Delaunay points out that the American distribution model—based on a three-tier system of importer, wholesaler, and retailer—already inflates prices. With the added tariff, French wines could become psychologically unaffordable for many consumers. To combat this, he proposes a collaborative pricing strategy involving both French producers and U.S. distributors, urging for reduced margins to protect the consumer base.
Calls for Dialogue, Not Escalation
Marine Descombe of Château de Pougelon in Beaujolais echoed this sentiment. While acknowledging the gravity of the tariffs, she emphasized the resilience of her trade relationships in the U.S. She remains cautiously optimistic, noting that political decisions can shift quickly and that both sides are motivated to find solutions.
Descombe and Delaunay both stress the need to avoid an escalating trade war between the EU and the U.S. They argue that such a conflict would damage both sides, with winegrowers becoming collateral damage in a political standoff. They call on EU authorities to prioritize diplomacy and avoid reactionary measures.
Political Response from Paris
In response to growing industry concerns, President Emmanuel Macron convened an emergency meeting at the Élysée Palace on Friday afternoon. Representatives from across the agri-food sector attended, including Dominique Chargé (La Coopération Agricole), Jean-François Loiseau (ANIA), and Gabriel Picard (FEVS). Prime Minister François Bayrou and ministers responsible for agriculture and foreign trade were also present.
This high-level gathering signals the urgency with which the French government views the issue. Official measures or policy responses are expected to follow shortly, aimed at protecting one of France's most iconic export industries.
A Fragile Future
As the French wine industry waits for clear policy guidance, it remains focused on maintaining strong ties with American importers and minimizing the damage. Producers are now forced to adapt to a rapidly evolving landscape where political shifts and economic pressures intersect.
In the meantime, winemakers, especially those from regions like Cognac, Burgundy, and Beaujolais, continue to call for moderation, diplomacy, and mutual understanding to preserve the cross-Atlantic wine trade that has long been a pillar of France’s global cultural influence.
Source: Vinetur