Cognac Crisis: Tariffs from China and US Threaten 70,000 Jobs in Charente
March 28, 2025
Industry representatives have expressed deep concerns that their appeals for assistance are not being adequately addressed amid these looming threats.
Florent Morillon, president of the Bureau National Interprofessionnel du Cognac (BNIC), has urged French Prime Minister François Bayrou to travel to China to negotiate a resolution to the tariff crisis.
The BNIC is also advocating for a three-month extension of an antidumping investigation by China on European brandies, which is set to conclude on April 5, to allow for further negotiations.
Alarmed by the potential economic collapse, 120 distillers, 270 merchants, and 4,400 winegrowers in Charente and Charente-Maritime are calling for urgent action to address these threats.
Morillon emphasized that the imposition of these tariffs could annihilate the entire cognac ecosystem, jeopardizing approximately 70,000 jobs.
The U.S. market alone represents 1 billion euros in sales for cognac, underscoring the severity of the situation with the proposed tariffs.
The cognac industry hopes that Barrot's efforts will lead to a postponement of the tariffs and that Prime Minister Bayrou will later visit China to resolve the situation permanently.
The BNIC insists that the EU should remove American spirits from its list of products subjected to tariffs in retaliation for U.S. tariffs on steel and aluminum, viewing their industry as collateral damage in a broader geopolitical conflict.
French Foreign Minister Jean-Noël Barrot is visiting Beijing on March 27-28, 2025, to discuss the tariff issue with Chinese officials and seek a resolution.
The cognac industry in Charente is facing a significant crisis due to impending tariffs from both China and the United States.
On April 5, 2025, China is expected to impose tariffs ranging from 34% to 39% on cognac imports, while U.S. President Donald Trump has threatened a staggering 200% tariff shortly thereafter.
During his visit, Barrot aims to persuade Chinese officials to delay the implementation of customs duties until July 5, 2025, to facilitate further negotiations.
Summary based on 3 sources