Finance
French wine, spirits exports lose fizz for third year as trade tensions hit
Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
French 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 for a third consecutive year in 2025 as U.S. tariffs and duties in China hurt sales, and the outlook remains challenging, industry group FEVS said on Tuesday.
French wine and spirits exports dropped 8% to 14.3 billion euros ($17.03 billion) and 3% in volume last year to 168 million cases as U.S. and Chinese trade barriers hit demand.
Since 2022, French wine and spirits exports have fallen 17% in value and slipped from being France's second-largest export sector to third, behind aerospace and cosmetics, as trade tensions intensified.
Looking ahead, FEVS Chairman Gabriel Picard said the sector should benefit from new EU trade deals with India, and with the Mercosur bloc, where demand is expanding, though 2026 could remain difficult without improved market access.
Last year, higher tariffs on shipments to the United States and threats of even higher ones, up to 200%, cooled demand, especially in the second half, with 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.
Sales to South Africa jumped 22% to 182 million euros, while Vietnam, the Philippines and Australia also showed strong momentum, offering diversification options as traditional markets contracted.
($1 = 0.8397 euros )
(Reporting by Sybille de La Hamaide; Editing by Susan Fenton)
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.
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