EU Backs French Wine Export Scheme Amid U.S. Tariff Talks

The European Commission has approved a €5 billion French scheme to boost wine and spirit exports to the U.S. before potential new tariffs. The initiative offers re-insurance against commercial and political risk, aiming to support exporters as the U.S. remains their largest market.

The European Commission greenlit a €5 billion ($5.6 billion) initiative on Thursday, aimed at bolstering French wine and spirits exports to the United States amid looming tariff changes.

The scheme, designed under EU state aid provisions, will operate between May 8 and July 8, 2025. Its goal is to assist exporters in shipping goods to the U.S. before new tariffs, potentially introduced by President Donald Trump, come into effect. This move follows a significant 5% rise in shipments to the U.S., marking it as France's most lucrative market for wines and spirits.

Additionally, this approval coincides with the European Commission's tough stance against U.S. tariffs, proposing measures on €95 billion of imports if negotiation efforts flounder. The French scheme, featuring a re-insurance mechanism to safeguard against commercial and political risks, emerges amidst a larger strategy to counter potential U.S. tariffs extending to wines, bourbon, and other spirits, possibly sparking retaliatory actions.

(With inputs from agencies.)