French cognac industry group calls for de-escalation of US, EU trade dispute

PARIS (Reuters) - The European Union and the United States need to de-escalate their trade dispute and wine and spirits should be left untouched by both sides, said Florent Morillon, the president of the National Interprofessional Office of Cognac (BNIC), a cognac industry group.

"We will very clearly lose market share," he said in an interview with Reuters. "For our region and our entire economy, it is a cold shower."

U.S. President Donald Trump imposed on Wednesday sweeping tariffs on imports, including 20% on products from the European Union.

The cognac industry has also faced pressure from China, which imposed temporary tariffs on shipments of the spirit in October amid a dispute with the European Union over electric vehicles. China and the United States are the cognac industry's most important export markets.

(Reporting by Tassilo Hummel; Editing by Makini Brice)