Sales of French wine and spirits are expected to slide at least 20% in the United States after U.S. President Donald Trump announced reciprocal tariffs, the French wine and spirits exporters group FEVS said on Wednesday.
Trump said the United States would impose a 20% duty on imports from the European Union.
The French wine and spirits industry had already been under pressure, with exports globally falling for the second consecutive year in 2024 due to threats of U.S. tariffs, a softer Chinese market and lower prices.
FEVS chairman Gabriel Picard described the 20% tariff on EU beverages as colossal.
"It will have a very significant impact on business in the United States ... a very significant impact on the American consumer," he told Reuters.
The United States is the largest market for French wine and spirits, with shipments to the U.S. rising 5% in 2024 to 3.8 billion euros ($4.12 billion).
Exporters include LVMH (LVMH.PA), which owns Moet et Chandon champagne and Hennessy cognac, as well as Pernod Ricard (PERP.PA) and Remy Cointreau (RCOP.PA).
($1 = 0.9234 euros)
