Cognac Industry Pressured by US-EU Trade Dispute

The cognac industry, represented by BNIC president Florent Morillon, urges the EU and the US to resolve their trade conflict without impacting wine and spirits. Amid escalating US tariffs and pressure from China, the cognac industry faces significant export market challenges, risking economic impacts for the region.

Florent Morillon, president of the National Interprofessional Office of Cognac (BNIC), has called on both the European Union and the United States to de-escalate their ongoing trade dispute. He emphasized that wine and spirits should remain untouched amid the tensions.

In an interview with Reuters, Morillon expressed concerns about the potential loss of market share for the cognac industry, with China and the United States being its most crucial export markets. The recent tariffs imposed by U.S. President Donald Trump, including a 20% duty on European Union imports, add pressure on the sector.

Additionally, China's temporary tariffs on cognac shipments, introduced amid its dispute with the EU on electric vehicles, further compound the industry's challenges. The economic repercussions are expected to be severe for regions dependent on cognac production.

(With inputs from agencies.)