French wine producers fear price increases as a result of US election
The US is France’s fourth-largest trading partners, but tariffs may threaten exports
Exports to the US market may drop in coming years, if tariffs are re-introduced
Africa Studio / Shutterstock
The sale of French wine to the American market may be impacted by the re-election of Donald Trump, producers fear, as he may introduce heavy tariffs on imports of their goods.
The sector was hit by a 25% tax during Mr Trump’s first term as president, after a dispute between aircraft manufacturers Boeing (based in the US) and Airbus (based in France).
His successor Joe Biden suspended the tariff when he came to power, which helped contribute to around €5 billion worth of exports from French alcohol producers to the US market in 2022.
The burgeoning sector may be hit by a return of the tax – or a similar tariff – once Mr Trump takes the reins again in January 2025.
Read more: Dollar soars against euro after Trump’s election win
There are reports that the incoming president wants to impose tariffs of at least 10% on all products entering the US, rising higher for certain products from certain nations.
“Our wines and eaux-de-vie could become much more expensive [if tariffs come back] and US consumers would turn away from them, since there is also a major inflation crisis,” said Jérôme Bauer, President of the CNAOC (Confédération nationale des producteurs de vins et eaux-de-vie de raisins à appellations d'origine contrôlées).
Certain producers, who export up to 10% of their annual wine production to the US would be hit hard.
“We're a little concerned, because [the previous tariffs] slowed down our exports to the United States,” said vineyard owner David Lelièvre to France Bleu.
Cognac fears
Wines and spirits from across France are popular in the US – reds such as Burgundy and Bordeaux, as well as status symbol champagne – would suffer, but cognac producers are particularly worried.
Producers of the spirit are already facing a 25% tariff on cognac sales in China – a major market – as a response to EU tariffs on Chinese electric vehicle imports.
The potential 10% tariffs across-the-board Mr Trump wishes to impose mean however, that all French products would be affected, including the luxury goods sector.
The US is the fourth-largest trading partner for France, with overall sales across all sectors reaching around €45 billion.
Read more: French wine production faces sharp decline
