Transatlantic Tariff Tensions: Cognac Caught in the Crossfire

French Prime Minister Francois Bayrou commented on the EU's tariff policy against U.S whiskey, suggesting it was a mistake. He calls for dialogue to protect France's cognac industry from U.S. countermeasures. Discussions with Washington and Beijing are planned to address these transatlantic trade tensions.

The European Union may have erred in its tariff strategy by targeting American whiskey as a response to U.S. tariffs, French Prime Minister Francois Bayrou suggested on Sunday. He urged negotiations to shield France's cognac industry from further punitive measures.

U.S. President Donald Trump threatened severe tariffs on European alcoholic products if the EU maintains its proposed tax on American bourbon. Bayrou acknowledged potential missteps in including Kentucky bourbon as a retaliatory measure, highlighting reliance on outdated lists without thorough review.

The threat from Trump has unsettled European producers, including French cognac makers already affected by separate tariffs. Bayrou, who recently engaged with cognac industry representatives, hopes for constructive talks with Washington and Beijing to defuse tariff tensions. An upcoming trip to China is anticipated to address these concerns.

(With inputs from agencies.)