30% customs duties on exports: "a catastrophe for the wine sector," according to Jérôme Despey, the head of the branch at the FNSEA (French National Federation of Trade Unions).

The introduction of 30% customs duties on European exports to the United States would be a " catastrophe" for the French wine and spirits sector , reacted Jérôme Despey, head of the viticulture branch of the FNSEA union, on Saturday.

"It would be a catastrophe for the entire sector, in a situation where wines and spirits are already facing enormous difficulties," Jérôme Despey told AFP.

US President Donald Trump announced on Saturday the imposition of 30% tariffs on Mexico and the European Union, a new escalation amid negotiations ahead of the August 1 deadline.

"We are waiting to see the list of affected products, but if this were to be confirmed it would be a particularly difficult situation for the wine and spirits sector," he said.

In October 2019, the wave of customs duties (+25%) implemented by Donald Trump had already caused a 50% drop in French wine exports to the United States, Mr. Despey pointed out.

"Repositioning ourselves on export markets cannot be done with a magic wand. These are wine stocks that will remain on the domestic market and will cause difficulties for the industry on the eve of the next harvest," according to Jérôme Despey.

"It's not an embargo, but almost."

For Gabriel Picard, president of the Federation of Wine and Spirits Exporters (FEVS), 30%, combined with 15% exchange rate fluctuations, makes a 45% difference compared to American production.

"It's not an embargo, but almost," Picard said. "And it's first and foremost a shock and a surprise. The quality of high-level discussions between the EU and the United States in recent weeks has been quite good. We had almost reached a satisfactory framework agreement five or six days ago."

With the first 10% tariff increase in April, "everyone contributed, exporters and importers alike. But what has been announced is unthinkable. Export flows will become very limited."

According to him, this decision is "damaging for both sides" , because one dollar of wines or spirits imported into the United States generates four euros of business there.

"We have often seen threats from the United States, and we are asking the European Commission not to give up in the negotiations," stressed Jérôme Despey.