Champagne producers in France are bracing for impact. A new threat from President Trump to slap 30% tariffs on EU exports could send shockwaves through their most valuable overseas market: the United States.
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The U.S. isn’t just a major buyer, it’s the single biggest consumer of Champagne by value, accounting for 15% of global sales. But that pipeline now faces a massive shake-up. French producers warn that such a steep price hike would not only push bubbly out of reach for American consumers, it could also gut jobs across the supply chain, from vineyards in Verzenay to retail floors in New York.
“We’re already drawing up a plan to expand into Brazil and Southeast Asia,” said Maxime Toubart, head of the Champagne Committee. “But replacing the U.S. won’t happen overnight.”
Pop Goes the Margin
Champagne’s not just a luxury good, it’s a jobs engine. If tariffs go through, the effects won’t stop at France’s border. U.S. importers, distributors, hospitality venues, and event planners all stand to lose if prices surge and sales stall. Industry figures say previous tariff scares already caused double-digit export drops.
Hugo Drappier of Champagne Drappier warned that long-standing trade relationships are at risk. “This is about more than bottles,” he said. “It’s about trust, tradition, and livelihoods.”
Retailers Raise the Alarm
American sellers are also sounding the alarm. Higher import costs will likely be passed down to consumers, pricing out casual buyers and slowing sales during peak holiday seasons. Retailers say they’ve weathered enough supply shocks in recent years and this one could push some over the edge.
Even for fans who can afford a splurge, $100 bottles may soon cost $130 or more. Some high-end venues are already rethinking their wine lists in anticipation.
Tariff Hangover Looms Large
The timing couldn’t be worse. Inflation is sticky, consumer sentiment is shaky, and global wine demand is still recovering from the pandemic-era slump. The Champagne Committee says 2024 exports had only just begun to recover. Now, producers are being forced back on defense.
And it’s not just Champagne. The EU wine lobby is pushing hard to keep wine and spirits out of any new tariff rounds, warning that another round of economic warfare could backfire badly for both sides.
France’s luxury sector has long been a symbol of Europe’s economic soft power. But in this fight, there may be no victors. Champagne sellers are already diversifying, but no market can match the U.S. for volume, value, and influence.
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