Remy Cointreau Prepares for Trump's Proposed Tariffs Challenge

Remy Cointreau is preparing to face a potential 10% tariff on foreign goods proposed by U.S. President Donald Trump. The company plans to mitigate the impact through cost-cutting and possibly adjusting prices, while also learning from past experiences with high tariffs in China.

Remy Cointreau is bracing for a potential 10% tariff on foreign goods, a move proposed by incoming U.S. President Donald Trump, according to CEO Eric Vallat.

Trump's tariff plan, aimed at addressing the U.S. trade deficit, targets foreign-made products, including spirits like Remy's cognacs, produced exclusively in France. "10% is not going to kill us," Vallat remarked, noting a negative impact, though not as severe as the 40% duties imposed by China on EU brandy.

To navigate these challenges, Remy plans to focus on cost cutting and margin optimization. Price adjustments and strategic stock management are also under consideration, as the company seeks to manage its business effectively amidst the looming tariff threats.

(With inputs from agencies.)