The head of the French wine and spirits lobby group FEVS said that US President Donald Trump’s decision to pause most tariffs was ‘half good news’ for the sector.
Nicolas Ozanam told Reuters the move will initially enable French wine and spirits companies to resume shipments at 10% custom duties instead of 20%, and therefore at the same level as all other suppliers.
“The real constraint is logistics. We have a 90-day window, and there are clearly people who will want to anticipate and stock up over there to be able to react more quickly,” he said.
He added that given how 10% custom duties remained in place, the sector still faced inflationary pressures.
“In a rather inflationary context, and with a sliding dollar, this will still lead to a rise in prices and therefore a drop in consumption in the United States,” he said.
Italy’s Response
Italian wine and spirits trade group Federvini said that US President Donald Trump’s decision to pause most tariffs represents ‘a step in the right direction’, but the remaining 10% duty and uncertainty are a drag on the sector.
“A 10% tariff may be manageable in the short term, but it is neither sustainable nor desirable for the future… we need regulatory certainty and a clear and stable trade framework,” Federvini’s president Micaela Pallini in a statement.
Last year, Italy sold €2 billion ($2.2 billion) worth of wines, spirits and vinegars in the US market, a quarter of its total worldwide exports, according to Federvini figures.
However, fears over the effects of potential tariffs slowed exports last month and producers and US importers gathered at a wine fair in Verona, in the north-eastern Veneto region last weekend, voiced concerns about the outlook.