French Wine and Spirits Exports Plunge 8% as U.S. Market Shrinks Sharply

2026-02-12

Tariffs, trade tensions, and economic uncertainty drive steepest drop in American demand for French alcohol in years

French wine and spirits exports experienced a significant decline in 2025, falling by about 8% to reach approximately 14.3 billion euros, or around $17 billion, according to data released by France’s Federation of Wine and Spirits Exporters (FEVS) on Tuesday. The drop was attributed mainly to escalating geopolitical and trade tensions, with the United States market showing the most pronounced decrease.

Exports to the U.S., which is one of the largest destinations for French wine and spirits, fell sharply by 21% over the year. The FEVS reported that the volume of French wines and spirits sold in the U.S. dropped below 30 million cases, marking a 9% decrease compared to the previous year. This downturn followed precautionary stockpiling at the end of 2024 and was compounded by economic uncertainties that affected consumer spending habits.

The FEVS pointed to several factors behind the export slump. Newly introduced tariffs in the U.S. market and an unfavorable exchange rate made French products less competitive. In January, President Donald Trump threatened to impose a 200% tariff on French wines and champagnes after a diplomatic disagreement with French President Emmanuel Macron regarding international policy on Gaza. These threats added further instability to an already challenging trade environment.

Despite these setbacks, Gabriel Picard, president of the FEVS, noted that wine and spirits remain France’s third-largest contributor to its trade surplus. He emphasized that “geopolitical tensions, trade conflicts, exchange rate fluctuations, and also the loss of household confidence have weighed on our exports.” Picard expressed hope that new European Union trade agreements with India and the Mercosur bloc could open up expanding markets for French producers. However, he cautioned that unless market access improves, 2026 could present continued difficulties for exporters.

The French wine and spirits sector has faced periodic challenges from U.S. tariffs in recent years, often linked to broader political disputes between Washington and Paris. The latest figures reflect how sensitive the industry is to shifts in international relations and economic policy. As global demand patterns change and trade barriers fluctuate, French producers are watching closely for signs of recovery or further disruption in their key export markets.