Champagne Producers Grapple With U.S. Tariff Threat

Champagne producers in France are seeking new markets due to potential U.S. tariffs on EU exports. The U.S. is a key market, and the tariffs could raise consumer prices and threaten jobs. Diversification is essential, but replacing the U.S. market poses significant challenges.

Champagne producers in northeastern France are seeking new markets after U.S. President Donald Trump announced potential 30% tariffs on EU exports. The United States, being the largest market for champagne, accounts for 10% of exports by volume and 15% by value. This move might increase consumer prices and jeopardize jobs across the supply chain, both in France and the United States.

Stephane Vignon, a family champagne producer in Verzenay, remarked that these tariffs would severely impact family exports by reducing income from bottle sales and affecting grape harvest quotas. Maxime Toubart, chairman of Comite Champagne, emphasized the need for producers to explore markets in Brazil, Southeast Asia, and South Africa, noting that 70% of champagne sales are concentrated in only five countries.

The situation mirrors challenges faced by the cognac industry, primarily exported to China and the U.S. Hugo Drappier, of Drappier Champagne, stressed the importance of maintaining strong client relationships through consistent wine quality, hoping the imposition of new tariffs doesn't fracture these bonds.

(With inputs from agencies.)