France's Fine Wine Industry Grapples with Trump's Tariff Threat

The owner of a top Bordeaux chateau in France, Florence Cathiard, expresses concern over possible 200% U.S. tariffs on European wine, fearing it could devastate businesses. She hopes it's a negotiation tactic by Trump. EU wine exports to the U.S. are substantial, with France heavily involved.

The looming threat of a 200% tariff on European wines by U.S. President Donald Trump has sent shockwaves through the French wine industry. Florence Cathiard, the owner of Chateau Smith Haut Laffite, is concerned this move could be economically devastating.

Cathiard, who references Trump's book 'The Art of the Deal', believes the tariffs may just be a hardline negotiating tactic to gain leverage in ongoing U.S.-EU trade disputes. Her chateau relies on the United States for over 20% of its wine sales.

The potential tariff hike could triple wine prices, jeopardizing sales in a major market amidst competition and previous losses from Chinese market closures. The French wine sector remains hopeful for intervention from influential figures like Bernard Arnault.

(With inputs from agencies.)