By Manuel Ausloos
EPERNAY, France (Reuters) -French wine and spirits producers are bracing for a 15% tariff on their exports to the United States, a crucial market, even as the European Commission pledges to keep pressing for a preferential rate for the sector.
Details of an EU-U.S. trade deal released on Thursday after months of negotiations indicated wines and spirits – a culturally and economically important industry in France – will not be shielded from the baseline 15% rate applied to most European goods.
“This is a major source of concern for our emblematic sectors,” French agriculture minister Annie Genevard wrote in a post on X, citing the lack of a tariff exemption for the sector and other agricultural goods.
The tariffs’ impact coupled with unfavourable currency exchange rates could slash annual French wine and spirits sales revenues by around 1 billion euros ($1.17 billion), according to Gabriel Picard, president of France’s federation of wines and spirits exporters.
“Our first reaction is very simple: it’s a huge disappointment,” he told Reuters.
The U.S. is the biggest market for champagne, for example, accounting for 10% of exports by volume and 15% by value.
“It’s a very important, rich market that is growing, with people who love the French art de vivre,” said Frederic Zeimett, CEO of champagne label Leclerc-Briant, using a French phrase that translates as “the art of living”.
Producers of the world-renowned sparkling wines have said the new import levies will push up prices for U.S. consumers, threatening jobs throughout the supply chain, both in France and the United States.
President Donald Trump’s tariffs come at a time when Zeimett said the sector is already grappling with a weaker dollar compared to the euro, and few other markets are in a position to quickly pick up the slack from any weakness in U.S. sales.
He estimates the price of a bottle of his label’s champagne could increase by $20 for U.S. shoppers, bringing it to around $70, but added that he was considering flexibility in order to maintain business in the United States.
“I don’t want to leave the American market,” Zeimett said. “It’s the leading export market for champagne. So let’s try to preserve this leading position, even if it means making an effort on the price of our bottles.”
($1 = 0.8537 euros)
(Reporting by Manuel Ausloos; Writing by Mimosa Spencer; Editing by Joe Bavier)
