The Trump tariffs impact French cognac industry more than ever before, pushing some producers to drastic measures. Christophe Fillioux, owner of the Jean Fillioux cognac house in southwest France, has begun tearing up vineyards passed down through five generations. Founded in 1894 by his ancestor, the estate now faces an uncertain future due to compounding trade issues.
This week, former President Donald Trump imposed a 20% tariff on all European goods, dealing a severe blow to France’s nearly $3 billion cognac sector. The decision comes just months after China—targeting European retaliation against its electric vehicle exports—introduced its own tariffs on French cognac. As a result, exports to China, the second-largest cognac market by volume, have plummeted by over 50%.
The timing couldn’t be worse. The United States, which consumes half of all cognac exports, now faces higher prices due to the new tariffs. Growers like Fillioux are deeply concerned. Standing in a vineyard his father planted in 1980—the year he was born—Fillioux reflected on the tough choices ahead. He has already uprooted half a hectare and plans to remove another 1.5 hectares next year as part of an industry-wide crisis strategy.
“The situation is very hard to navigate. We’ve got a huge visibility problem,” he said. Worse still, Trump has hinted at slapping a 200% tariff on European wine and spirits if Europe imposes more duties on U.S. bourbon. That threat looms over the industry like a storm cloud.
In 2024, France exported €1 billion ($1.1 billion) worth of cognac to the U.S., its largest market. Wine exports also surged 8% to $2.3 billion, partly due to buyers stockpiling in anticipation of protectionist U.S. policies. Now, the sudden policy changes are turning those stockpiles into stranded assets.
To survive, Fillioux is diversifying. He is working with distributors to tap into emerging markets such as Thailand, Vietnam, and Nigeria. Yet he admits that he is more fortunate than others. Owning his brand and holding little debt gives him more control compared to vintners under contract with major houses like Hennessy, Martell, and Remy Martin.
“Problems are part of a vintner’s life,” Fillioux said. “With all the good and bad surprises.”
Trade tensions are not the only challenge. The global luxury market has slowed significantly in the past two years. Cognac sales, which surged during the COVID-19 pandemic, have since declined. During the boom, many growers bought new land and expanded vineyards to meet soaring demand. Now, saddled with debt, they are struggling to make ends meet.
Florent Morillon, president of the Bureau National Interprofessionnel du Cognac (BNIC), acknowledged the situation. “We’re going to manage these situations as best we can with the banks,” he said. “All the investments made by the cognac houses, vintners, and distillers were based on sound business decisions. Then, external factors arrived.”
The Trump tariffs impact French cognac producers not just economically, but emotionally. Generations of family tradition now face disruption, if not loss. As geopolitical tensions continue to disrupt global markets, France’s storied cognac industry must find new paths to resilience and sustainability.
