US Tariffs Threaten French Wine and Spirits Exports
New US tariffs on French wines threaten significant revenue losses and job security.
Key Points
- • New 15% tariffs on French wines and spirits effective August 7, 2025.
- • FEVS predicts a 25% loss in export volume, equating to 1 billion euros in revenue.
- • The US market represents around 4 billion euros in annual French wine and spirits revenue.
- • Concerns arise over the potential flooding of the French market with unsold products.
New tariffs imposed by the US are expected to severely impact French wines and spirits exports. Starting August 7, 2025, a 15% tariff will be introduced under the Trump administration, with the Federation of Wine and Spirits Exporters (FEVS) predicting a 25% decrease in export volume to the United States, which is the largest market for French wines and spirits. Gabriel Picard, president of FEVS, highlighted that this downturn could equate to a loss of approximately 1 billion euros in revenue, with the industry already generating around 4 billion euros annually from US sales.
The anticipated decline is attributed to both the tariffs and currency fluctuations, which could raise prices by 30% for French products in the US. This situation threatens the livelihoods of about 600,000 jobs within the French wine and spirits sector. Furthermore, Picard warned of the possibility of unsold inventory flooding the French market, exacerbating the issue domestically.
Picard also mentioned the need for a concerted response from the European Commission to negotiate exclusions for wines and spirits from these tariffs, though he expressed doubt over the outcomes of such negotiations. Additionally, he supports efforts to finalize the Mercosur trade agreement, recognizing its potential advantages despite mixed reactions from certain segments of the French agricultural community.