{
  "id": 10228564,
  "title": "Collateral damage: How Cognac is paying the price for Europe’s trade wars",
  "url": "https://urgent.news/2026/09/27/collateral-damage-how-cognac-is-paying-the-price-for-europes-trade",
  "topic": "world",
  "section": "World",
  "published": "2026-09-27T14:16:04.000Z",
  "source": {
    "name": "Euronews",
    "slug": "euronews",
    "url": "https://www.euronews.com/2026/09/27/cognac-pays-the-price-for-europes-trade-wars"
  },
  "original_language": "en",
  "account": "As the Cognac harvest comes to an end in southwestern France, winegrowers anticipate another challenging year. Renowned for its 300-year-old amber brandy, Cognac production is confined to the Charente River region but has been affected by trade conflicts between the EU and China, as well as tensions with the US. Despite its historical association with the EU, the industry now faces significant challenges due to the collapse in sales. Over 98% of Cognac production is exported outside the EU, and winegrowers have watched helplessly as access to key markets has been restricted.\n\nThe drought this year has helped reduce supply to match declining demand. Matthieu Augier, a winegrower from Gondeville, lamented that the harvest saw a 30-40% reduction in terms of economic output. In recent years, Cognac sales have plummeted from 230 million to 140 million bottles. The primary trading houses, Rémy Martin, Hennessy, Martell, and Courvoisier, were forced to reduce their orders from winegrowers after contracts were canceled. China, the second-largest market, imposed duties on Cognac in 2024, targeting the brandy as part of its retaliation against the EU's action against Chinese electric vehicles. The US, which accounts for about half of Cognac exports, also imposed tariffs on French products in April 2025, exacerbating the industry's plight.\n\nFrench Cognac is now subject to a 15% tariff, which has created an uncertain environment for importers in the US. Despite European attempts to secure exemptions from the tariff, progress remains scarce. The sector has explored vine grubbing schemes to adapt to lower demand, but limited uptake has occurred due to the long-term nature of vineyards. The crisis highlights the need for European solidarity mechanisms to protect industries affected by trade wars, with French President Emmanuel Macron promising compensation to winegrowers.",
  "summary": "French Cognac producers are battling falling sales as trade disputes with China and the US squeeze the export-dependent industry and leave growers seeking EU support.",
  "key_points": [
    "Cognac production confined to Charente River region, facing trade conflicts with EU, China, US.",
    "Over 98% of Cognac exports outside EU, sales plummet from 230 million to 140 million bottles."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Euronews Business",
        "title": "Collateral damage: How Cognac is paying the price for Europe’s trade wars",
        "url": "https://urgent.news/2026/09/27/collateral-damage-how-cognac-is-paying-the-price-for-europes-trade-10230330",
        "published": "2026-09-27T14:16:04.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}