The Federation of Wine and Spirits Exporters denounced the additional taxes put in place by the Americans after Washington's announcement.

More products are now affected by customs duties of 25%.

The industry is said to be "sacrificed" for an old dispute between Boeing and Airbus. 

The French wine and spirits sector is "sacrificed for a dispute over aeronautics", denounced Thursday, its Federation of exporters FEVS, after the announcement of additional customs duties by Washington in the context of an old dispute between Boeing and Airbus.

"We feared the escalation of the conflict, we are there and it will last," lamented to AFP the president of the Federation of French wine and spirits exporters, César Giron, estimating that the shortfall in the sector could exceed one billion euros. 

25% customs duty

Three weeks from the end of its mandate, the Trump administration announced on the night of Wednesday to Thursday that it was preparing to impose additional customs duties on European products, in particular wines (excluding sparkling wines such as champagne) and cognacs.

Washington is authorized to do so by the World Trade Organization as part of its dispute with the EU over aid to aeronautical giants.

Since October 2019, the United States has imposed a 25% tariff on still wines under 14 degrees, sold in containers of less than two liters.

According to information from the FEVS, this 25% tax will now extend to all still wines, including in bulk, as well as to wine-based spirits, such as cognac.

"New categories (of products) are included, there is no longer any escape, it is the entire sector resulting from the vineyards that is impacted", regretted César Giron, expressing his "anger" and his "consternation" after this new decision which makes French wines more expensive for American consumers. 

"The world's largest market for wines and spirits"

The first round of taxes, combined with the Covid-19 pandemic, divided bottled wine exports by two, causing a loss of revenue of 600 million euros, according to the Federation.

"The second wave is even more powerful than the first", noted the president of the Federation, recalling that the United States was "the most important market in the world for wines and spirits".

The FEVS calls on the EU to "take action to finally resolve this conflict between Airbus and Boeing" and "to compensate the French and European companies which are the collateral damage of this interminable conflict".

The Federation also asks the French government to support the industry.

"He turns a deaf ear," reproached César Giron.

For its part, the cognac industry "takes note of the announcement of the American administration" and "can only regret being involved in an aeronautical dispute which does not concern it", told AFP the National Office interprofessional of cognac.

"The presence of cognac is not threatened on the American market but this matter is serious and must be settled as soon as possible. The sector calculates the precise impact", he added.