France Faces €1 Billion Loss Due to U.S. Tariffs on Wine and Spirits
In 2024, French wine and spirits exports totalled €15.6 billion, with the U.S. being the largest market, accounting for €3.8 billion of this figure. However, the new tariffs are expected to reduce annual revenues by up to €1 billion, as reported by the French Wine and Spirits Export Federation (FEVS). The federation has expressed disappointment over the lack of exemptions for wines and spirits in the recent EU-U.S. trade agreement.
In 2024, French wine and spirits exports totalled €15.6 billion, with the U.S. being the largest market, accounting for €3.8 billion of this figure. However, the new tariffs are expected to reduce annual revenues by up to €1 billion, as reported by the French Wine and Spirits Export Federation (FEVS). The federation has expressed disappointment over the lack of exemptions for wines and spirits in the recent EU-U.S. trade agreement.
Champagne producers are particularly affected, with the U.S. representing 10% of their export volume and 15% of their export value. The tariffs could increase the retail price of a bottle of champagne by approximately $20, potentially impacting both French and American jobs in the supply chain.
Industry leaders are urging the European Commission and the French government to negotiate for reduced wine tariffs to mitigate the adverse effects on this vital sector.
Impact:
The 15% U.S. tariff on French wine and spirits may lead to a €1 billion revenue loss, increased consumer prices, and potential job cuts in both France and the U.S.
