French Wine Exports to U.S. Face Rising Costs Amid Tariffs and Currency Shifts

French wine producers are facing new challenges as the United States maintains a 15 percent tariff on imported wines and spirits from France. The decision, announced by former President Donald Trump on July 27 and confirmed just before the framework agreements signed between the European Union and the United States on August 21, has disappointed many in the French wine industry. Producers had hoped that these tariffs would be lifted, especially as exports to the U.S.—the largest market for French wines—were on the rise in 2024.

In 2024, French wine and spirits exports to the United States reached 3.8 billion euros, accounting for nearly a quarter of all French wine and spirits exports worldwide. The continued tariffs have a significant impact on this important trade relationship. The U.S. market is complex, with each of its fifty states imposing its own local taxes on top of federal tariffs. These state taxes range from 4 to 9 percent, further increasing the final price of imported wines and spirits.

For example, a bottle of wine shipped from France at a price of 10 euros is subject to the 15 percent federal tariff upon arrival in the U.S., raising its cost to 11.50 euros. State taxes are then added, pushing the price up to between 11.96 and 12.53 euros depending on the state where it is sold. This layered system of tariffs and taxes makes French wines less competitive in American stores.

The impact is not limited to wine. According to an analysis conducted for the Wine & Spirits Wholesalers of America (WSWA) by New York-based economic research firm John Dunham & Associates, the price of a glass of Scotch whisky in a bar could increase by one dollar due to these tariffs. The WSWA has expressed concern about how these higher prices might affect consumption, which is already declining in some segments. The timing is also problematic, as these price increases are being felt just before major American holidays when demand for wine and spirits typically rises.

Another factor complicating matters for European producers is the recent devaluation of the U.S. dollar. Before Donald Trump’s election, the euro and dollar were nearly at parity; now, the dollar has lost about 15 percent of its value against the euro. This currency shift means that even without tariffs, European producers receive less revenue for their exports when converted back into euros.

When combined—the federal tariffs, state taxes, and currency devaluation—the total increase in cost for American consumers can reach between 40 and 46 percent compared to previous years. This sharp rise threatens to reduce demand for French wines and spirits in their most important export market.

French producers are now watching closely to see if future negotiations between Washington and Brussels might bring relief from these tariffs. For now, however, they must contend with higher costs and uncertain demand as they navigate one of their most challenging export environments in recent years.