French Cognac Faces Crisis Amid US-China Tariff Crossfire

French Cognac exports are reeling under the weight of escalating trade tensions between the EU, China, and the US. China's retaliatory tariffs on European brandy, following the EU's crackdown on Chinese electric vehicles, have slashed Cognac shipments to China by 75% in December 2024. The crisis threatens €1 billion in annual revenue and 70,000 industry jobs. Simultaneously, looming US tariffs add further uncertainty, leaving producers like Rémy Cointreau and Pernod Ricard scrambling for solutions to safeguard their vital markets.
Source: Bloomberg, Euronews, The Drinks Business