French wine and spirits exports have plummeted to their lowest level in a quarter of a century, largely due to increased tariffs imposed by the United States and China. This downturn, reported by the French wine and spirits industry association (FEVS), highlights the severe impact of escalating trade tensions on one of France’s most cherished export sectors.
Declining Exports and Market Shifts
In 2025, total exports of French wine and spirits decreased by 3% in volume, reaching 168 million cases—the lowest number recorded since the early 2000s. The value of these exports fell even more sharply, dropping 8% to €14.3 billion (£12.3 billion), marking the lowest revenue in five years. This decline has relegated the wine and spirits sector from being France’s second-largest export category to third place, now behind aerospace and cosmetics.
“With the current market conditions, there is no immediate relief in sight,” warned FEVS Chair Gabriel Picard. Increased tariffs, particularly on shipments to the U.S., have cooled demand significantly. As a result, the industry is bracing for a challenging year ahead, despite potential new trade agreements with the South American Mercosur bloc and India.
U.S. Tariffs and Chinese Duties Impact Sales
The recent imposition of higher tariffs on French products has had a chilling effect on sales, especially in the United States. In the latter half of 2025, sales to the U.S. saw a dramatic decline of 21%, falling to €3 billion (£2.5 billion) and sending volumes tumbling below the 30 million cases threshold. Picard noted that the volume corrections in the market may not have been sufficient, suggesting that further adjustments could be necessary in 2026.
Similarly, exports to China have suffered, declining by 20% to €767 million (£661 million). The introduction of anti-dumping duties on cognac, armagnac, and other wine-based spirits has significantly constrained shipments, exacerbating the downturn for these flagship products. Picard lamented the geopolitical tensions impacting cognac’s market presence in China, stating, “Restoration takes much longer than the initial decline.”
Resilience in European Markets
Despite the setbacks in the U.S. and China, exports within Europe have remained relatively stable, amounting to €4.1 billion (£3.5 billion). The UK, in particular, has shown resilience, with a 3% increase in volumes despite ongoing fiscal pressures. Champagne, which represents 35% of the overall value of French wine exports, experienced a slight increase in volume, although its value fell by 4.5% due to the strengthening euro against the dollar.
David Chatillon, co-chair of the Comité Champagne, expressed cautious optimism regarding future sales, noting, “We hope to see a rebound in sales in 2026, but it will likely not be significant as the underlying environment remains largely unchanged.”
Looking Ahead: Caution Amid Uncertainty
As the French wine and spirits sector navigates these tumultuous waters, industry leaders remain hopeful for a recovery, albeit tempered by the realities of the current geopolitical landscape. The anticipated trade agreements with Mercosur and India may provide some relief, but the sector must first contend with the repercussions of existing tariffs and the ongoing challenges posed by international relations.
Why it Matters
The decline in French wine and spirits exports underscores the vulnerability of traditional industries to shifting global trade dynamics. As tariffs and geopolitical tensions continue to reshape the market landscape, the long-term sustainability of this vital sector hangs in the balance. For France, which prides itself on its rich viticulture, this decline signals not just economic loss but a potential cultural shift, as the nation grapples with the implications of a changing global marketplace. The road to recovery may be long, but the stakes are high, not just for producers but for the heritage of French winemaking itself.