Fears for France's already weakened champagne industry in US-EU trade war

The French champagne industry is bracing itself for a major blow after US President Donald Trump threatened on Thursday to slap tariffs of up to 200% on European alcohol if the EU's new 50% tariffs on bourbon are not lifted. 

The US is France’s top client when it comes to champagne exports with 25 million bottles shipped across the Atlantic last year. 

In 2024, France exported €3.8 billion worth of wines and spirits to the United States, representing a quarter of its total exports.

Trump’s threat in a tit-for-tat escalation of the transatlantic trade war is causing panic among those who work in the already weakened champagne sector. 

Champagne sales have been sinking for more than two years as inflation-weary consumers both in France and abroad cut back due to the rising prices. 

The total number of champagne exports decreased by nearly 10% last year. At home, the demand for the beverage also dipped 8%. 

The champagne region is also struggling with climate change and extreme weather events such as high heat and early frosting. 

This has resulted in smaller harvests for wine growers, further raising the price of champagne. 

It’s a trend Agnès Baracco, the owner of a wine shop in north-eastern Paris, has noticed in the last few years. 

“I sell champagne, but over the last two years, prices have gone up a lot, and customers are turning their backs,” she told Euronews. 

“When I first opened the shop fifteen years ago, my cheapest champagne was around €20. Today, I sell it for €27 because I trim my profit margin when I could sell it for more,” she explained. 

Instead, she claims her clients are turning to other bubbly alternatives like a sparkling Vouvray wine that she sells for approximately €10. 

“It’s my best seller. And