EU backs French spirits exports to US with €5bn scheme
The European Commission has approved a €5 billion (US$5.5bn) scheme to help French wine and spirits producers export to the US amid tariff threats.
The scheme is in place from 8 May to 8 July 2025 and will allow French wine and spirits makers to export inventory to the US, prior to the new wave of tariffs going into effect.
The new scheme uses a re-insurance mechanism, which offers short-term guarantees to companies that provide insurance against commercial and political risk.
The European Commission called the scheme “necessary, appropriate and proportionate” to help producers export to the States. It was approved under EU state aid rules.
Teresa Ribera, executive vice-president for the European Commission’s Clean, Just and Competitive Transition, said: “The commission responded rapidly to France’s request to approve this export re-insurance scheme.
“Given the possible EU-wide shortage of export credits to the US during this period, the commission will apply the same approach to all comparable future cases notified by member states.”
On 2 April, US president Donald Trump announced a global tariff of 10%, with a higher rate of 20% for the EU. However, on 9 April, this was postponed for 90 days.
In response, on 14 April, the EU similarly began a 90-day pause on a series of planned countermeasures against US tariffs on EU steel and aluminium imports to allow space for negotiations.
The EU had previously threatened a 50% tariff on American whiskey.
The European Commission has launched a public consultation on a list of US imports that could be hit by EU countermeasures, if ongoing EU-US negotiations do not lead to the removal of US tariffs.
The EU is considering tariffs on a number of products including Bourbon, wine, gin, vodka, liqueurs, spirits distilled from fruit, and cordials.
The US is the largest market for French wine and spirits, with exports rebounding last year to €3.8bn (US$3.96bn) after rising by 5%.
North America is the biggest market for Cognac by volume, which rose by 15.3% to 70.6 million bottles in 2024, however value dipped by 1.5% to €1.12bn (US$1.24bn).
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