The European Commission has approved a €5 billion ($5.5 billion) support plan to help French wine and spirits producers export their products to the United States. The decision comes as new U.S. tariffs threaten to hit European exports.
The plan, which runs from May 8 to July 8, 2025, is designed to let French exporters ship their stock to the U.S. before tariffs are enforced. It uses a reinsurance model to provide short-term guarantees for companies that offer commercial and political risk insurance.
In a statement, the European Commission described the move as “necessary, appropriate and proportionate.” The plan was approved under EU state aid rules.
Commission Responds Quickly to French Request
Theresa Ribera, the European Commission’s Executive Vice President for Clean, Fair and Competitive Transition, confirmed the Commission’s swift action.
“The Commission has responded quickly to France’s request to approve this export reinsurance plan,” said Ribera. “Given the potential EU-wide shortage of export credits to the United States during this period, the Commission will take the same approach to all future similar cases notified by member states.”
U.S. Tariff Threat Delayed, Talks Continue
On April 2, U.S. President Donald Trump announced a new set of global tariffs, including up to 20% on EU goods. However, the decision was postponed for 90 days on April 9, pushing the enforcement deadline to early July.
In response, the EU also paused planned countermeasures for 90 days starting April 14. These measures had targeted U.S. steel and aluminum imports. The delay was intended to allow more time for negotiations between the two sides.
EU Considers Retaliatory Tariffs on U.S. Spirits
If negotiations fail to resolve the dispute, the European Commission plans to launch a public consultation on possible EU countermeasures. Among the potential targets are American whiskey, bourbon, vodka, gin, liqueurs, fruit spirits, and cordials.
The EU had earlier warned of a possible 50% tariff on American whiskey if the U.S. tariffs were implemented.
U.S. Remains Key Market for French Alcohol
The United States is the top market for French wine and spirits. Exports to the U.S. rose 5% in 2024, reaching €3.8 billion ($3.96 billion).
North America also leads in Cognac consumption. In 2024, 70.6 million bottles of Cognac were sold in the region—a 15.3% increase in volume. However, the value of those exports dropped 1.5% to €1.12 billion ($1.24 billion), suggesting pricing pressures or market shifts.
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