The French cognac industry is on edge as it faces a looming double threat from China and the United States, with potential import tariffs that could severely disrupt one of France’s most prized exports.
On April 5, Beijing is expected to confirm whether it will impose import duties of 34% to 39% on cognac, a decision that could significantly impact sales in the lucrative Chinese market.
At the same time, the United States, under President Donald Trump’s administration, has floated the possibility of slapping a 200% tariff on the French brandy, intensifying fears among producers in the Charente region.
A Growing Trade Crisis
For years, China has been a major consumer of cognac, with premium brands like Hennessy, Rémy Martin, and Martell enjoying strong demand.
However, Beijing’s potential tariff hike stems from its broader trade disputes with Europe, particularly in response to EU-imposed duties on Chinese electric vehicles.
Meanwhile, Washington’s tariff proposal is part of ongoing tensions between the US and France over trade imbalances.
Industry leaders in France have sounded the alarm, urging their government to step up diplomatic efforts before the situation escalates.
“We are at a critical moment,” said Florent Morillon, president of the Bureau National Interprofessionnel du Cognac (BNIC), the regulatory body overseeing the industry.
“If these tariffs go through, we will see a drastic drop in sales and a direct impact on thousands of jobs in the Charente region.”
Diplomatic Efforts Underway
Amid growing uncertainty, France has launched a last-minute push to prevent the tariffs. Foreign Minister Jean-Noël Barrot traveled to Beijing on March 27 and 28 to appeal for a delay in implementing the tariffs, arguing that they could be postponed until July 5 to allow for further negotiations.
Speaking alongside his Chinese counterpart, Wang Yi, Barrot emphasized the need for “a swift resolution to this issue, allowing us to focus on partnerships and investments for the future.”
If this delay is granted, Prime Minister François Bayrou is expected to travel to China in the coming months to seek a permanent resolution.
Economic Ramifications
The potential tariffs threaten to shake up a sector that contributes billions of euros to the French economy. Cognac exports reached €3.6 billion in 2023, with China and the US ranking among the top destinations.
A sharp increase in tariffs could force producers to raise prices, making their products less competitive against alternatives such as whisky and baijiu.
Beyond the economic damage, industry leaders warn of job losses and a slowdown in investment in the region. “Cognac production is not just about big brands—it’s a livelihood for farmers, distillers, and businesses throughout Charente,” Morillon said.
Waiting for a Resolution
With the deadline approaching, all eyes are on Beijing and Washington. The French government remains hopeful that diplomatic engagement will avert a trade war over cognac.
However, producers are bracing for potential disruptions and considering contingency plans, including seeking new markets in Southeast Asia and Africa.
For now, the industry can do little but wait—hoping that politics will not jeopardize the future of one of France’s most iconic spirits.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
