In cognac-producing town, Trump's tariffs a 'disappointment' for exporter of oak barrels

Record ID: 1988014

  • Title: In cognac-producing town, Trump's tariffs a 'disappointment' for exporter of oak barrels
  • Date: 3rd April 2025
  • Summary: COGNAC, FRANCE (APRIL 3, 2025) (REUTERS) WORKER ROLLING OAK BARREL OFF A RAIL WORKER APPLYING FINISHING PRODUCT ON BARREL VARIOUS OF WORKERS APPLYING METAL RINGS ON BARREL BARREL LABEL, INDICATING IS IT MADE OF FRENCH OAK LABEL ‘RODNEY STRONG VINEYARDS’ BEING PRINTED ON OAK VARIOUS OF BARREL LABEL (SOUNDBITE) (French) DIRECTOR OF VICARD BARREL MAKERS, JEROME SCHMITT, SAYIN
  • Embargoed:
  • Keywords: Cognac French spirits global trade oak barrels tariffs
  • Location: COGNAC, FRANCE
  • City: COGNAC, FRANCE
  • Country: France
  • Topics: Europe,Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA001394003042025RP1
  • Aspect Ratio: 16:9
  • Story Text: PLEASE NOTE: EDIT 3543-USA-TRUMP/TARIFFS-COGNAC-OUTLOOK CONTAINS FILE IMAGES OF COGNAC IN GLASSES AND BOTTLES, AND DRONE VIEWS OF VINEYARDS
    A barrel-making factory in the town of Cognac is certain to feel the impact of U.S. tariffs.
    Vicard Tonnelleries’ director Jerome Schmitt said they were disappointed while listening to U.S. President Donald Trump announce what they had been fearing for months now - tariffs on French products.
    Trump announced on Wednesday (April 2) that he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners. The European Union was targeted with a 20% rate.
    Vicard manufactures oak barrels for wine and cognac - 60% of their products are exported worldwide, while 25% are sold to local cognac producers. A quarter of their exports go to the United States, mostly to vineyards in California, which store their wine in barrels made of French oak.
    As such, Vicard is twice exposed to the new tariffs because their barrels will fall into the 20% rate on EU products, and their local market - cognac producers - are also expecting a downturn.
    In 2024, 45% of French cognac was exported to the U.S., making it the biggest market for the sector.
    Vicard is only one of many businesses relying on the cognac industry, and people living in the town of Cognac are already worried that the tariffs will lead to job losses.
    Sales of French wine and spirits are expected to slide at least 20% in the United States after Trump announced reciprocal tariffs, the French wine and spirits exporters group FEVS said on Wednesday.
    The industry had already been under pressure, with exports globally falling for the second consecutive year in 2024 due to threats of U.S. tariffs, a softer Chinese market and lower prices.
    (Production: Marco Trujillo, Tassilo Hummel, Michaela Cabrera)
  • Copyright Holder: REUTERS
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