French wine and spirits exports face devastating losses due to new US tariffs

The French association representing wine and spirits exporters (FEVS) has warned that the US's recent tariff announcement will have "extremely serious consequences" for the French and European wine and spirits sectors.

According to the association, exports of French wines and spirits to the US could decrease by approximately 800 million euros ($877 million), with the total loss for the European Union estimated at 1.6 billion euros, Caliber.Az reports via French media.

The FEVS stressed that such a decline would have a "huge impact on employment" and the overall economy of the sector. Additionally, the association pointed out that the new tariffs would negatively affect American importers, wholesalers, and retailers.

In 2024, France exported around 2.4 billion euros worth of wine and 1.5 billion euros worth of spirits to the US, its largest export market. The FEVS emphasized the critical need for continued dialogue and constructive engagement between France, the EU, and the US to foster a positive agenda on transatlantic trade issues.

The CNAOC wine and spirits association also weighed in, estimating that the new US tariffs would impact French exports by "several hundred million euros." They described the effect on French-made cognac and armagnac as "a catastrophe of unimaginable proportions."

The US tariffs, announced by President Donald Trump, are based on a "reciprocal" approach. The basic minimum tariff rate is set at 10%, but each country's rate will be adjusted to be half of what they impose on American imports. For imports from EU countries, the duty would be set at 20%.