Published by Global Banking & Finance Review®
Posted on February 10, 2026
3 min readLast updated: February 10, 2026
Add as preferred source on GoogleFrench wine exports fell for the third year due to US and China trade tensions. Emerging markets may offer new opportunities.
By Sybille de La Hamaide
PARIS, Feb 10 (Reuters) - French wine and spirits exports fell last year to their lowest volume in at least 25 years as U.S. tariffs and Chinese duties hit sales and a strong euro made some alcohol more expensive, industry group FEVS said on Tuesday, warning of no imminent relief.
Total French wine and spirits exports dropped 3% in volume last year to 168 million cases, their lowest level since at least the beginning of the century, according to a spokesperson for FEVS. They fell 8% in value to a five-year low of 14.3 billion euros ($17.03 billion).
French wine and spirits exports have slipped from being traditionally France's second-largest export sector to third, behind aerospace and cosmetics, as trade tensions intensified.
Looking ahead, FEVS Chair Gabriel Picard said the sector should benefit from new EU trade deals with the South American Mercosur bloc and India, though 2026 could remain difficult without improved market access.
REBOUND IN SALES TO THE US STILL UNCERTAIN FOR 2026
Last year, higher tariffs on shipments to the United States and threats of a further hike, up to 200%, cooled demand, especially in the second half, with 2025 sales dropping 21% to 3.0 billion euros and volumes falling below 30 million cases.
"There is a real decline in the United States and the volume correction may not have been sufficient, and perhaps we will see another volume correction in 2026," Picard told Reuters ahead of the Wine Paris exhibition.
Sales to China dropped 20% to 767 million euros in 2025 as anti-dumping duties sharply curbed shipments of cognac, armagnac and other wine-based spirits, FEVS said.
Exports of cognac, the French industry's flagship spirit, plunged 15% in volume and 24% in value, becoming one of the biggest casualties of escalating trade tensions.
"Geopolitical tensions between France and China marked the end of cognac in China. Now stopping something doesn't take long, but rebuilding takes a long time," Picard said.
Within Europe, wine and spirits exports held broadly stable at 4.1 billion euros, with resilience in markets such as the UK, where volumes rose 3% despite fiscal pressure, FEVS said.
Champagne exports, which amount to 35% of the value of all wine exports, slightly rose in volume but fell 4.5% in value. The fall was due to the sharp rise of the euro against the dollar that started early last year, David Chatillon, co-chair of the Comite Champagne, said at Wine Paris.
"We hope to see a rebound in sales in 2026 but it will likely not be significant because the environment is not very different," he said.
($1 = 0.8397 euros )
(Reporting by Sybille de La Hamaide; Editing by Susan Fenton and Emelia Sithole-Matarise)
Export decline refers to a decrease in the volume or value of goods sold to foreign markets, often due to factors like tariffs, trade tensions, or reduced demand.
Emerging markets are countries with developing economies that are experiencing rapid growth and industrialization, often presenting new opportunities for trade and investment.
Cognac is a type of brandy produced in the Cognac region of France, known for its distinct flavor and aging process, making it a popular export.
Tariffs are taxes imposed on imported goods, which can increase prices for consumers and reduce demand for foreign products, impacting trade balances.
Explore more articles in the Finance category
