European Commission approves 5 billion euro French plan to support wine and spirits exports to the United States

The European Commission has given the green light to a 5 billion euro French initiative designed to support wine and spirits exports to the United States. The approval, announced Thursday, comes as France seeks to help its producers move inventory before new U.S. tariffs are set to take effect. The scheme, which will run from May 8, 2024, through July 8, 2025, operates under EU state aid rules and is intended as a temporary measure.

The United States remains the largest market for French wine and spirits. In 2024, exports to the U.S. increased by 5 percent, reaching a value of 3.8 billion euros. The French government introduced this scheme in response to ongoing trade tensions and the threat of higher tariffs on European goods entering the American market.

The plan allows exporters to use a re-insurance mechanism that offers short-term guarantees to companies insuring against commercial and political risks. This approach is expected to make it easier for French producers to ship their products across the Atlantic during a period of uncertainty.

The timing of the scheme coincides with a pause in tariff increases by the U.S. administration. Former President Donald Trump had previously announced plans for a 20 percent tariff on all imports from the European Union but suspended those plans temporarily. French wine exporters have indicated that they expect American buyers to increase their orders during this window, taking advantage of the absence of new tariffs.

On the same day as the scheme’s approval, the European Commission also proposed potential countermeasures targeting up to 95 billion euros worth of U.S. imports if ongoing negotiations with Washington do not resolve existing trade disputes. These measures are part of a broader EU response to U.S. import taxes on cars and other goods, as well as reciprocal tariffs introduced during Trump’s presidency.

The proposed EU countermeasures would affect American products such as wine, bourbon, and other spirits. Industry representatives in both Europe and the United States anticipate that these actions could lead to further retaliation from Washington, potentially escalating trade tensions between the two economic blocs.

French officials have emphasized that their export support scheme is temporary and designed to provide relief while diplomatic efforts continue. The program is expected to benefit a wide range of producers across France’s wine and spirits sector, which includes some of the country’s most iconic brands.

As trade talks proceed, both European and American industry groups are closely monitoring developments. The outcome will likely have significant implications for transatlantic commerce in alcoholic beverages and could influence global trade patterns in the months ahead.