President Trump’s threat of a 200% tit-for-tat tariff on EU alcohol is causing panic in France’s already struggling champagne industry. The US is the top client for champagne exports, with 25 million bottles shipped across the Atlantic last year. Trump’s escalation in the transatlantic trade war has alarmed those in the champagne sector, which has seen declining sales due to rising prices and changing consumer preferences. Climate change and extreme weather events have also led to smaller harvests and higher costs for champagne producers. This has prompted consumers to turn to more affordable alternatives like sparkling wines from Italy, Spain, and other regions.
The situation has been described as a wake-up call for the champagne sector, with experts suggesting a need for a renewed marketing approach to remain competitive in the changing market. While both the EU and France have shown reluctance to back down in the trade dispute, French Trade Minister Laurent Saint-Martin has vowed to defend the country’s industries against threats.
The French Federation of Wine and Spirits exporters has expressed frustration at being “systematically sacrificed” in the ongoing trade war. The industry is facing a challenging period, with uncertainties surrounding the future of champagne exports to the US and the need for adaptation to changing consumer preferences. Overall, the champagne sector is bracing for tough times ahead as it navigates through the impacts of tariffs and changing market dynamics.
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