logo
Fear of Trump's tariffs ripples through France's Champagne Region

Fear of Trump's tariffs ripples through France's Champagne Region

Boston Globe17-03-2025

'A 200% tariff is designed to make sure that no Champagne will be shipped to the United States,' said Calvin Boucher, a manager at Michel Gonet, a 225-year-old Champagne house on the avenue. With 20% to 30% of the 200,000 bottles it makes yearly exported to U.S. wine merchants and restaurants, 'that business would be crushed,' he said, adding that the price of a $125 Champagne would more than triple overnight.
Get Starting Point
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
Épernay sits in the heart of a region that produces the world's finest bubbly. The United States is its biggest foreign market, with 27 million bottles shipped there in 2023, valued at around 810 million euros ($885 million).
Advertisement
Chardonnay, pinot noir and Meunier grapes blanket the rolling hills and deep valleys of Champagne, which covers more than 130 square miles, from the city of Reims to the Aube river. The area is under France's strict Appellation d'Origine system, which ensures that only the sparkling wine made here, using specific methods, can legally be called Champagne.
With more than 4,000 independent winemakers and 360 Champagne houses, the region produces about 300 million bottles annually, with 1 billion more resting in cellars. The biggest houses -- including Dom Pérignon, Veuve Clicquot and Moët & Chandon, owned by the luxury conglomerate LVMH Moët Hennessy Louis Vuitton -- dominate production, and exports and account for one-third of total sales.
But such figures were of little comfort in the wake of Trump's threat. Just off the Avenue de Champagne, Nathalie Doucet, president of Besserat de Bellefon, a specialty Champagne house that exports 10% of its premium production to the United States, said the trade war made her anxious.
Advertisement
'We are waiting to see what happens, but it's not good news,' said Doucet, whose Champagne is made with a laborious low-pressure process that gives it a crisp acidity and fine effervescence.
Champagne already had a tough year with bad weather that had reduced the harvest. Consumption has declined as young people shifted habits and switched to cocktails and artisanal beer. Champagne sales have thinned since the pandemic, falling 9% last year.
At the same time, she said, Europe is grappling with wars in Ukraine and the Gaza Strip. And now the trade war with the United States, one of France's traditional allies, over issues that have nothing to do with Champagne, has made her feel like collateral damage.
'It seems like a deliberate punishment,' said Cyril Depart, owner of the Salvatori wine shop, just off the avenue, which offers a wide variety of artisanal Champagnes. His wife was an export manager for one of the big Champagne houses and had already been crunching numbers on the potential impact.
Leah Razzouki, an Épernay resident whose family has worked in the Champagne business for generations, said she was infuriated. 'Many of our friends are small producers and they would be hit very hard,' she said.
The damage of a trade war would spread far beyond Champagne's regal houses, hitting U.S. American importers and distributors and putting numerous small businesses at risk.
Michael Reiss, president of Vineyard Road, a small distributor in Framingham, Massachusetts, that imports Champagne and wines from Europe and distributes them in New England, said small businesses like his, including restaurants and retail shops, would be 'very hurt.' The unpredictable trade environment could force businesses to cancel planned investments, he added.
Advertisement
Adding to the pain, tariffs applied at the beginning of the supply chain can multiply, as each business handling the product marks it up accordingly, Reiss said. 'So even a 25% tariff can easily lead to a 40% to 60% increase in prices,' he said.
A 200% tariff 'would eliminate the possibility of people buying things that bring them joy in their lives,' he added.
Even inside the Champagne Museum bordering the avenue in Épernay, the chatter strayed to Trump's tariffs. Sacha Raynaud, whose family owns a small Champagne house, had brought a friend to learn the history of Champagne, which first appeared in the 17th century on the tables of royalty, giving the drink its nickname, 'the king of wines.'
'French people are waking up to what's happening in the United States, and starting to speak about boycotting American products,' she said.
Similar worries circulated in the fields. Working in a buttery morning light, a dozen field hands secured knotted brown vines to wires ahead of the spring growing season on freshly plowed earth in the shadow of the Champagne-producing town of Reuil, just west of Épernay.
Even these jobs were at risk, said Patrick Andrade, who runs a small company that helps maintain Champagne vineyards. The 12-hectare (30-acre) plot belongs to a small house that exports to the United States, he said.
Should sales fall, wine producers would need fewer field hands, and there would be less work for tractor operators, cork makers and bottle makers. In the worst case, he added, it could force Champagne producers to consider ripping out vines.
Advertisement
On Friday, French Foreign Minister Eric Lombard called the trade war 'idiotic' and said he would travel to Washington soon. 'We need to talk to the Americans to bring the tension back down,' he told French television.
France's biggest Champagne houses have stayed conspicuously silent, declining to say anything while waiting to see how Trump's threat would play out -- and whether European officials could get him to back off.
Among them was LVMH Moët Hennessy Louis Vuitton, which sells nearly 35% of its wines and spirits in the United States. The company did not respond to a request for comment.
Outside LVMH's Moët & Chandon mansion on the Avenue de Champagne, a group of Americans snapped selfies in front of a statue of Dom Pérignon, the monk who invented Champagne. Inside the stately building, no staff members wanted to talk tariffs.
Even so, locals whispered rumors that the big houses were upset by the tariff threat, but expected that it could possibly blow over.
After all, some said, Bernard Arnault, France's richest man and the head of the LVMH empire, which dominates much of Champagne's production, has a long-standing relationship with the U.S. president and was invited by Trump to his inauguration. Perhaps Arnault's friendship would prevail at the end of the day, they said.
But for now, that is all just speculation. The reality is that nothing is certain -- and uncertainty is bad for business.
Back at the Michel Gonet Champagne house, Boucher pointed to a display of cuvées that were popular among customers in the United States.
Advertisement
'It's just a stressful situation because we don't know if the tariffs will even happen,' he said. 'It's not good for anybody.'
This article originally appeared in

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

UnitedHealth Seeks $1B Latin America Exit: Sources
UnitedHealth Seeks $1B Latin America Exit: Sources

Yahoo

time27 minutes ago

  • Yahoo

UnitedHealth Seeks $1B Latin America Exit: Sources

UnitedHealth Group Incorporated (NYSE:UNH) is one of the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation. The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said. A senior healthcare professional giving advice to a patient in a clinic. New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity. UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio

Disney to Pay Comcast $438.7M for Full Hulu Ownership, Ending Valuation Dispute
Disney to Pay Comcast $438.7M for Full Hulu Ownership, Ending Valuation Dispute

Yahoo

time27 minutes ago

  • Yahoo

Disney to Pay Comcast $438.7M for Full Hulu Ownership, Ending Valuation Dispute

The Walt Disney Company (NYSE:DIS) is one of the best Dow stocks to invest in. The company has agreed to pay Comcast $438.7 million to buy out its remaining stake in the streaming service Hulu, ending a lengthy appraisal process. In 2023, The Walt Disney Company (NYSE:DIS) announced its plan to acquire Comcast's 33% share of Hulu, paying $8.6 billion based on a minimum value of $27.5 billion that the companies had agreed on in 2019. This move wasn't unexpected, as reports had indicated Disney's intention to gain full control of Hulu. The Walt Disney Company (NYSE:DIS) had originally acquired a two-thirds stake in Hulu through its purchase of Fox Corp.'s entertainment assets. After the initial payment, Disney and Comcast entered an appraisal process initially set to finish in 2024. The deal is expected to be finalized by July 24. Disney CEO Bob Iger made the following statement: 'We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.' Meanwhile, The Walt Disney Company (NYSE:DIS) has started merging Hulu with its other streaming services, which are also bundled with ESPN+, its sports streaming platform. While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.

Mayor Bass, regional mayors call for end to ICE raids in Southern California: "Our communities are not battlegrounds"
Mayor Bass, regional mayors call for end to ICE raids in Southern California: "Our communities are not battlegrounds"

CBS News

time27 minutes ago

  • CBS News

Mayor Bass, regional mayors call for end to ICE raids in Southern California: "Our communities are not battlegrounds"

After days of violent and destructive protests in Los Angeles, fueled by an increase in immigration enforcement operations, Mayor Karen Bass and other regional mayors called for an end to Immigration and Customs Enforcement raids. At a news conference Wednesday morning, Bass said the unrest in a portion of Los Angeles started last Friday after immigration operations were carried out in several parts of Southern California. Bass told reporters that LA and surrounding cities were "peaceful" before the raids. Mayor Karen Bass called on the Trump administration to end the immigration enforcement operations taking place across the Southern California region. KCAL News She explained that the raids have caused fear in immigrant communities, and accused President Trump of worsening the situation when he ordered the deployment of National Guard and U.S. Marine troops. She called for an end to ICE raids and the federalization of troops. "When you start deploying federalized troops on the heels of these raids, it is a drastic and chaotic escalation and completely unnecessary," Bass said. Mr. Trump posted on his Truth Social platform, claiming that his decision to deploy troops to LA saved the city from burning to the ground. "The great people of Los Angeles are very lucky that I made the decision to go in and help!!!," he wrote. Her speech came a day after she implemented a curfew in a portion of downtown LA after five consecutive nights of demonstrations, which have escalated to clashes between protesters and law enforcement officers, as well as hundreds of arrests. Since the start of the protests, parts of downtown LA have been covered in graffiti, businesses have been looted and public property has been vandalized. TOPSHOT - A car burns as a demonstrator waves a Mexican national flag during a protest following federal immigration operations, in the Compton neighborhood of Los Angeles, California on June 7, 2025. RINGO CHIU/AFP via Getty Images During an interview Wednesday morning on CBS Los Angeles, Bass explained that the curfew will be extended until it is necessary to ensure public safety. The curfew currently runs for one square mile in the downtown area from the 5 Freeway to the 110 Freeway and from the 10 Freeway to where the 110 Freeway and 5 Freeway merge from 8 p.m. to 6 a.m. Bass has also taken to social media to share how the raids are affecting the city. In a post on X, she wrote, "Angelenos are trying to live their lives—going to work, caring for their families—while facing the constant threat of sudden immigration crackdowns." Other mayors from across Southern California joined Bass, calling for an end to the ICE raids. The Mayor of Huntington Park, Arturo Flores, a U.S. Marine Corps combat veteran, told reporters that the military neighborhoods. "The deployment of Marines on our U.S. soil is an alarming escalation that undermines the values of democracy," Flores said. "Our communities are not battle grounds." Flores said the ICE raids being carried out in his community and others across the region are a form of intimidation that traumatizes hardworking residents. He said fear-based tactics are being used to target immigrant communities. The Mayor of Paramount, Peggy Lemons, added that residents are choosing not to leave their homes or send their children to school out of fear that ICE will take them away. "For many in our city, this has been the most devastating time in recent memory," Lemons said. She said immigrants, who play such an important role in the makeup of the region, should not have to live in constant fear.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store