De-Escalating Trade Disputes: The Cognac Conundrum

The European Union and U.S. must resolve their trade disputes without targeting wine and spirits, says Florent Morillon, head of BNIC. Cognac exports, vital for their economy, face threats from U.S. tariffs. The industry also faces pressure from China over similar disputes. Caution is advised.

In the midst of escalating trade tensions, Florent Morillon, president of the National Interprofessional Office of Cognac, urged the European Union and the United States to leave wine and spirits untouched by their disputes. The cognac industry stands at risk of losing vital market share due to trade tariffs.

Recently, U.S. President Donald Trump imposed sweeping tariffs on European imports, with a 20% hike affecting numerous products. These measures have raised concerns among cognac producers about potential losses in key export markets, including the United States and China.

Despite reassurances that discussions are ongoing to avoid further tariffs, Morillon emphasized the importance of prudence to protect the industry from the financial blows of trade conflicts.

(With inputs from agencies.)