STORY: French wine and cheese producers have expressed shock at U.S. tariffs announced by President Donald Trump.
He unveiled a 10% minimum tariff this week on most goods imported to the U.S. with a higher 20% rate for the European Union.
It’s intensified a global trade war that threatens to drive up inflation and stall U.S. and worldwide economic growth.
Sales of French wine and spirits are expected to slide at least 20% in the U.S., according to French groups and officials.
They also warned of mass layoffs in regions like Cognac, where French brandy is produced for export.
CEO of Champagne Leclerc Briant Frederic Zeimett said the Champagne region could also have a “real problem” if tariffs continue.
“That would be the end of the U.S. market and the problem is the American market, for the whole of the Champagne region, is 25-30 million bottles a year. So is there a back up solution for selling 25-30 million bottles elsewhere in the world which weren’t going to the United States? I don’t think so.”
As well as buying millions of bottles of Champagne, the U.S. is the biggest export market for France’s Bordeaux wine region.
And while a threatened 200% tariff has remained outstanding for now, industry bodies said levies are high enough to hurt the sector.
Also, the U.S. market for French dairy products including cheese has doubled in the last 15 years.
That’s according to Francois-Xavier Huard, head of French dairy lobby group FNIL.
“Even though we have been expecting a decision of this kind and we have already been through this in 2019 with the first Trump administration because we already had a 25% tariff on top of the 10% in place and it already struck a blow to our sector. The extent of the countries and products impacted are really a shock to the food sector, and dairy in particular, and French dairy producers.”
He added that the U.S. market for his sector was worth $388 million last year.
France said its President Emmanuel Macron would convene all representatives of business sectors hit by the U.S. import tariffs.