Trump Has French Cognac Over A Barrel

France is facing yet a significant challenge as one of its key cultural and commercial assets, the renowned French luxury drink cognac, is at risk of financial destruction. The French cognac producers  have expressed concerns that their industry is on the brink of destruction. This situation is unfolding against the backdrop of ongoing trade tensions between the US, China and the EU.
Historically, 97% of Cognac production has been exported, with the USA and China being the primary markets for this truly symbolic and famous French product. However, the European Union, concerned about the so called dumping of low cost of Chinese cars, has introduced duties on them in a move that has had a significant impact on the industry. China reciprocated by introducing duties on cognac, leading to a serious decline in exports of this truly French product to China.

In this conflict now between the USA and the EU with each imposin tariffs , the European Union decided to impose duties on American whiskey, and in response, Donald Trump imposed duties of 200% on European wines and spirits, including cognacs. This has had a significant impact on the industry.Its important to note that the US without the current tariffs imports over $ 3 billion worth of cognac and the EU only imports around $500million of US whiskey
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Florent Morillon, president of the National Interprofessional Association of Cognac (BNIC), representing the industry, expressed his distress, stating, "We are on the brink of financial destruction." He added that the industry had become "useless hostages in a war in which we decide nothing."
The industry has already faced challenges due to retrictions brought previously by the Chinese restrictions, which have resulted in losses of €50 million per month. In February, Morillon already expressed concerns about the decline in exports, highlighting that the situation was also beginning to impact the labor market associated with cognac production. He emphasised the importance of the industry to the European and particularly French economy, highlighting its role in supporting 70,000 jobs and underscoring the need for policy interventions to safeguard its continued operation.

However, the support provided by the European Union was neglible, as they  decided on the imposition of 50% tariffs on several goods imported from the United States, including bourbon whiskey. It should be noted that this measure was a response to the White House's decision to impose 25% duties on steel and aluminium imports.
When the Americans described the European decision as "extremely disappointing", it became evident that Europe would not be able to relelax and the tarriffs would be stepped up as Trump has a serious aversion to disappointment and further action was very likely and he  immediately targeted Europe and struck at its core. He remarked, "You don't like our bourbon?" Then we will target your wines and spirits with a 200% duty on wine and cognac imports.

Now previously in response to declining cognac exports to China, the French government has initiated a partial destruction of vineyards, which, in accordance with bureaucratic terminology , has been termed "voluntary and temporary". However, the recent trade tensions with the United States have caught the wine industry off guard, as the tariffs imposed by Trump point unmistakably to a single outcome.

"This  will make it difficult for us to sell a single bottle in the United States. We are committed to resolving this issue," Morillon stated. He even went so far as to call the situation a "catastrophe". While French people are known for their love of rhetorical statements, they still prefer not to throw around such strong words.

Morillon also highlighted the potential consequences of losing significant markets, citing the United States and China as key concerns. "If the current state of affairs persists, our company's viability is at risk."
In 2025, the American market for cognac producers will  experienced a significant decline, with a expected d loss of up to 45% in volume and 40% in value, according to Le Parisien.This fits with the fact that , exports to China after the introduction of tariffs have experienced a 60% decline over the past four months alone. However, these figures are likely to be just the beginning. As Patricia Gaboriau, vice president of the Cognac Defense and Management Organization, which unites 250 trading houses, has stated, "If we lose both China and the United States, we will lose around  two-thirds of our sales income."

The Cognacindustry, which is facing ruin, has once again appealed to the government and the EU authorities to draw attention to the situation they find themselves in. On Thursday, 20 March, the French Minister of Agriculture, Ms Annie Genfran, visited the Nouvelle-Aquitaine region to meet with cognac producers and promised that the authorities would adhere to a policy of "firmness and diplomacy."

While acknowledging that the solution to the issue depends on the policy of the EU authorities, who must express their will strongly and clearly in the interests of all members of the union, she added: "We do not want a trade war with the United States. A trade war would be detrimental to all parties involved. However, it is important to acknowledge the implications of international trade. "We import 500 million worth of wine and spirits from America, while Europe exports 14 billion (of similar products) to the United States."
It is therefore illogical for the EU to behave like it does when it lives in a glass house.
If sales after the  Chinese tariffs offered a modicum of hope, then Trump's introduction of tariffs  has effectively extinguished any prospect of the American  export market for cognac, which, despite the challenges still accounts for 45% of the industry's exports.

The financial impact could reach up to 2 billion euros annually just for the cognac setor.

However, President Trump who incidently does not drink alcohol decided to punish Europe with alcohol duties in reciprocation for US the tariff on US spirits, imposing a 200% duty, which is obviously unaffordable for Europe. Consequently, Minister Genfran's assertion that trade wars do not result in victors appears to be inaccurate. Any trade war is waged with the objective of winning, and President Donald Trump's actions indicate that he considers himself and his country will be the only winners.
It cannot be said that the French authorities are doing nothing: the cognac issue is expected to be discussed during Foreign Minister Jean-Noël Barrot's visit to Beijing on 27 March, and the French Prime Minister François Bayrou will also be travelling to China later - not only because of cognac, of course, but also for its sake. "Where it is necessary to show firmness, that is the prerogative of the European Union," said Madame Genfran, the Minister of Agriculture. "And when it comes to diplomacy, that is already the prerogative of France."
However, it is not very clear how France will be able to defend its interests when it cannot overrule the decisions of the European Union and is obliged to follow them whether it likes it or not.

As for the American market, according to American press reports, EU officials will postpone until mid-April the introduction of tariffs on American products, including bourbon, which has become a stumbling block, and will study the list of products subject to sanctions more closely. Perhaps the fact that Trump has promised to introduce new tariffs on goods from Europe will help the process. And it is quite possible that they will be such as to make the cognac war look like child's play.
However when it comes to tariffs and sanctions it appears that the European Union always comes of worst whether its against Russia ,China or the USA.Maybe Fond of Lying should stop trying to play games with leaders who are not mincing metro sexual soys boys and stand up for their countries.