Charles Fourny, the fifth generation champagne producer in the Côte Des Blancs region of France, said the uncertainty was disturbing. After more than two decades of building with U.S. distributors, he fears that these efforts might break down. With widespread attention to the industry, he said, “we don’t trust because now we say we don’t know what will happen.”
To buffer the blow, the European Commission has stepped in to help French exporters move their shipments to the United States before additional tariff hikes. The aid program, approved in early May, is designed to quickly carry out logistics and reduce the financial impact of responsibilities.
Despite this, the prospects remain grim. French Federation of Wine and Spirit Exporters predicts sales to the United States fell by 20% this year. Industry leaders warn that higher prices could drive alternatives to U.S. retailers and consumers, countries that are not hit by tariffs.
The chain reaction is already visible. LVMH’s luxury wine and spirits division Moët Hennessy reported slowing sales and falling profits blamed weak demand in the United States and China. For high-end producers, relying heavily on the U.S. market, has increased growing concerns – from inflation to changing consumer tastes. As trade tensions continue, many French champagne manufacturers are now focusing on alternative markets in Asia and the Middle East. But rebuilding this requirement will take time. In the near term, the glittering of France’s largest export market may continue to become dim. The road ahead looks increasingly uncertain for producer size.
