European wine industry leaders have urged calm but warned that US President Donald Trump's threat to impose 200% tariffs on French wine and champagne carries implications far beyond the bottle. The escalation, linked to Trump's demand that France join his proposed 'Board of Peace' for Gaza, has reignited trade tensions that have simmered since his return to office in 2025.
The French Federation of Wine and Spirits Exporters (FEVS) issued a statement on Tuesday stressing that the dispute is fundamentally geopolitical. 'These are geopolitical issues that go beyond the sectoral stakes of wines and spirits,' the FEVS said. 'As regards trade policy, this is an exclusive competence of the European Union. The issue must therefore be addressed at the European level, in a united and coordinated manner, and spoken with a single voice.'
Wine as a Strategic Pawn
The US remains the top export market for EU wine and spirits, making the sector particularly vulnerable to trade friction. Trump's latest threat came after an aide to French President Emmanuel Macron stated that France 'does not intend' to accept an invitation to join the Gaza peace board. Trump told reporters, 'I'll put a 200% tariff on his wines and champagnes and he'll join, but he doesn't have to join.'
Gabriel Picard, President of the FEVS, said the industry is taking the threat seriously but with composure. 'These statements by the President of the United States must be taken seriously, but with composure,' Picard said, adding that industry hopes rest on talks at the World Economic Forum in Davos this week, where US, French, and European leaders are expected to meet.
Ignacio Sánchez Recarte, Secretary General of the European Committee of Wine Companies, noted that wine is an iconic product that has become a frequent target in the broader EU-US trade dispute. 'When we talk about wine, we are talking about terroir products, very well-known brands; it is an iconic product in France as well as in Europe,' he said.
The EU-US trade deal struck last summer did not exempt wines and spirits from the 15% US tariffs already in place, despite European Commission efforts. The sector views itself as collateral damage in a deteriorating transatlantic relationship, which has also seen tensions over Greenland and other issues. The broader strain on the alliance is evident in calls from figures like the former NATO chief for Europe to reduce reliance on US defense, as reported in our coverage of the alliance's fraying ties.
Economic Impact Already Visible
While wine exports to the US were strong last year—accounting for 29% of EU exports—Sánchez Recarte cautioned that the surge was partly driven by US companies stockpiling ahead of anticipated tariffs. 'After the EU-US trade deal, in July-August, we are seeing a significant decrease in the average value of exported wines,' he said. Eurostat data shows that EU spirits sector exports fell by 25% between August and November 2025 compared with the same period in 2024.
The threat comes as Europe grapples with other geopolitical challenges, including the Strait of Hormuz crisis, where US and Iran have traded ship seizures, and Turkey has hosted middle powers in Antalya to explore new trade routes. The wine industry's predicament underscores how trade policy is increasingly entangled with foreign policy under Trump's administration.
European producers are now looking to Davos for a diplomatic breakthrough, but the message from Brussels is clear: the EU must speak with one voice. The sector's fate, they argue, is a test of European unity in the face of transactional US pressure.
