French wine and cheesemakers anxious as Trump tariffs hit

Bangkok Post Group

French wine and cheese producers were shocked and anxious on Thursday (April 3) at news of U.S. tariffs announced by President Donald Trump. - REUTERS

Transcript

00:00French wine and cheese producers have expressed shock at U.S. tariffs announced by President

00:07Donald Trump.

00:09He unveiled a 10% minimum tariff this week on most goods imported to the U.S., with a

00:15higher 20% rate for the European Union.

00:19It's intensified a global trade war that threatens to drive up inflation and stall U.S. and worldwide

00:25economic growth.

00:28Sales of French wine and spirits are expected to slide at least 20% in the U.S., according

00:33to French groups and officials.

00:36They also warned of mass layoffs in regions like Cognac, where French brandy is produced

00:40for export.

00:41CEO of Champagne Le Clerc-Briand, Frédéric Zeimat, said the Champagne region could also

00:48have a real problem if tariffs continue.

00:51That would be the end of the U.S. market, and the problem is the American market for

00:56the whole of the Champagne region is 25 to 30 million bottles a year.

01:01So is there a backup solution for selling 25 to 30 million bottles elsewhere in the

01:06world which weren't going to the United States?

01:09I don't think so.

01:13As well as buying millions of bottles of Champagne, the U.S. is the biggest export market for

01:17France's Bordeaux wine region.

01:21While a threatened 200% tariff has remained outstanding for now, industry bodies say levies

01:26are high enough to hurt the sector.

01:29Also, the U.S. market for French dairy products, including cheese, has doubled in the last

01:3315 years.

01:35That's according to François-Xavier Houard, head of the French dairy lobby group FNIL.

01:43Even though we have been expecting a decision of this kind, and we have already been through

01:48this in 2019 with the first Trump administration, because we already had a 25% tariff on top

01:55of the 10% in place, and it already struck a blow in our sector.

02:03The extent of the countries and products impacted are really a shock to the food sector, and

02:08dairy in particular, and French dairy producers.

02:17He added the U.S. market for his sector was worth $388 million last year.

02:24France said its President Emmanuel Macron would convene all representatives of business

02:27sectors hit by the U.S. import tariffs.

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