French Wine Exports Hit 25-Year Low Amid Trade Tensions
French wine and spirits exports suffered a significant decline last year due to U.S. tariffs, Chinese duties, and a strong euro. The industry's volume reached its lowest in 25 years. New EU trade deals might provide future relief, but geopolitical tensions still pose challenges, especially in the U.S. and China.
The exports of French wine and spirits have taken a dramatic hit, plunging to their lowest volume in 25 years according to the Federation of Wine and Spirits Exporters (FEVS). Major factors contributing to this decline include tariffs imposed by the U.S. and duties from China, coupled with the strengthening euro making exports costlier.
Once France's second-largest export sector, wine and spirits have now fallen to third place behind aerospace and cosmetics. Although hopes are pinned on upcoming EU trade deals with South America and India, the FEVS warns that the path to recovery won't be smooth, especially by 2026.
Sales to the U.S. remain precarious, with tariffs significantly reducing demand, and a similar decline is evident in China, where anti-dumping duties took a toll on exports. Cognac exports were notably impacted, decreasing significantly both in volume and value due to geopolitical tensions with China.
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