French Cognac producers face falling sales due to EU-China and EU-US trade disputes

French Cognac producers are facing a difficult year as trade disputes with China and the US have reduced access to key markets. China, which accounts for about 25% of Cognac exports, imposed tariffs in 2024 following EU duties on Chinese electric vehicles. The US, the largest market, also applies a 15% tariff on Cognac under a recent EU-US deal. To cope with falling demand, the industry has introduced vine-grubbing schemes with financial support. Producers and politicians are calling for EU solidarity to mitigate the impact on this traditional industry.