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
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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.