Trump's Tariff Pause: A Toast with Half a Glass

The French wine industry sees partial relief as U.S. President Trump pauses some tariffs, reducing them to 10% from 20%. Despite this, logistical and inflationary challenges persist, potentially leading to higher prices and reduced consumption in the U.S., warns FEVS head Nicolas Ozanam.

The French wine and spirits sector is cautiously optimistic after U.S. President Donald Trump announced a pause on most tariffs, reducing them from 20% to 10%, according to Nicolas Ozanam, head of the French wine and spirits lobby group FEVS.

Ozanam expressed that this decision allows French companies to resume shipments on par with other suppliers. However, he pointed out that the relief may be short-lived as logistics remain a critical challenge with a 90-day window to react.

Furthermore, even with reduced tariffs, inflationary pressures and the sliding dollar could still spike prices, potentially decreasing consumption in the United States, Ozanam cautioned.

(With inputs from agencies.)