Trump's Tariffs Threaten the Legacy of France's $3 Billion Cognac Industry

France’s cognac industry, vital to the region’s economy, faces turmoil due to U.S. tariffs imposed by President Trump. With China also cutting imports following EU levies, the industry struggles with declining sales. Cognac producers explore new markets, but the financial strain persists, threatening generational businesses.

France's storied cognac industry, valued at nearly $3 billion, is grappling with a severe financial crisis, exacerbated by the recent imposition of a 20% tariff on European goods by U.S. President Donald Trump. Cognac sales to China have also sharply declined following the European Union's trade levies, deepening the industry's turmoil.

Christophe Fillioux, owner of the Jean Fillioux cognac house, is tearing out vineyards as a survival strategy amid the ongoing crisis. With the U.S., the largest consumer, facing potential 200% tariffs, and China, the second-largest market, dwindling, producers are rushing to explore markets in Asia and Africa.

The global slowdown in luxury spending has further battered cognac producers, with many now indebted. Export-reliant, the industry must navigate these choppy waters or risk losing its traditional family-run businesses. The crisis signals a turning point for industry leaders seeking sustainable solutions while preserving their legacy.

(With inputs from agencies.)