April 6, 2025

French Cognac Feels the Burn of U.S. Tariffs 🍷

Christophe Fillioux’s family has been producing cognac in southwest France for five generations. But today, faced with new U.S. tariffs, he’s uprooting his vineyards to survive.

This week, U.S. President Donald Trump imposed a 20% tariff on all European goods, hitting France’s €3 billion cognac industry hard. The U.S. is the largest market for French cognac, buying one in every two bottles exported.

Fillioux, who runs the Jean Fillioux cognac house founded in 1894, has already removed half a hectare of vines and plans to cut more next year. “The situation is very hard to navigate. We’ve got a huge visibility problem,” he said.

China, the second-biggest buyer, also slapped tariffs on cognac last October, halving sales. Now, growers are bracing for more pain as Trump threatens 200% tariffs on European wine and spirits if the EU retaliates against U.S. bourbon.

Despite the pressure, Fillioux considers himself lucky. He owns his brand, carries little debt, and is seeking new markets in Asia and Africa. Still, the uncertainty is weighing heavily on producers.

“Problems are part of a vintner’s life, with all the good and bad surprises,” he said.

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