{
  "id": 9919978,
  "title": "Caught in the crossfire: Cognac pays the price for Europe’s trade wars",
  "url": "https://urgent.news/2026/09/26/caught-in-the-crossfire-cognac-pays-the-price-for-europes-trade-wars",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-26T06:00:04.000Z",
  "source": {
    "name": "Euronews",
    "slug": "euronews",
    "url": "https://www.euronews.com/2026/09/26/caught-in-the-crossfire-cognac-pays-the-price-for-europes-trade-wars"
  },
  "original_language": "en",
  "account": "As the Cognac harvest in southwestern France comes to an end, winegrowers know they are facing another challenging year. The 300-year-old brandy, produced only in the Charente River region, has been caught in the trade wars between the EU and China, as well as tensions with the United States, its top export market. Winegrowers have watched helplessly as access to both markets has been restricted.\n\nThe Cognac industry has a long-standing connection to the EU. Jean Monnet, a French statesman considered one of the EU's founding fathers, came from a Cognac-producing family and worked in the family business. However, the sector is currently in turmoil as sales decline. Cognac relies heavily on foreign markets, with 98% of production exported outside the EU.\n\nA drought this year has helped to bring supply closer to falling demand. Matthieu Augier, a winegrower from Gondeville, stated that the harvest is 30 to 40% lower in economic terms compared to a typical year. The four main trading houses - Rémy Martin, Hennessy, Martell, and Courvoisier - had to reduce their orders from winegrowers in the region after clients canceled contracts.\n\nThe trade war with China, which began in 2023, has had a significant impact on Cognac sales. France supported EU action against Chinese electric vehicles due to concerns over unfair subsidies for Chinese manufacturers. In retaliation, Beijing imposed duties on European brandy, including Cognac. China later exempted major producers, but the damage had already been done. By that time, distributors had stopped buying Cognac and removing it from their shelves.\n\nThe United States has also affected Cognac exports. During Donald Trump's first administration, the US imposed tariffs on French Cognac as part of the Boeing-Airbus trade dispute. These duties were later suspended under President Joe Biden. However, in April 2025, Trump imposed new tariffs on US trading partners, and an EU-USA deal in July 2025 set a 15% tariff on most European exports to the US, including Cognac.\n\nThe European wine and spirits industry has lobbied for exemptions from the 15% tariff, but progress has been slow. In July 2026, EU lawmakers agreed to remove remaining tariffs on US goods, and Washington agreed to discuss possible exemptions for Cognac. However, there is little indication of progress for the Cognac industry. French MEP Eric Sargiacomo stated that the recovery will primarily depend on the US market, while China's market is more complicated.\n\nThe Cognac crisis highlights the need for the EU to protect sectors affected by retaliation from European trade measures. The industry has launched two vine-grubbing schemes with financial support, but vine removal has been limited, with only 560 hectares out of 96,000 hectares within the Cognac appellation affected. French President Emmanuel Macron promised compensation but has yet to deliver.",
  "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 industry faces trade wars with EU, China, US",
    "98% of Cognac production exported outside EU",
    "Drought reduces 2025 harvest by 30-40%"
  ],
  "editors_take": "The Cognac industry's struggles in the trade wars between the EU and China and the US underscore the vulnerability of European sectors to retaliatory measures and highlight the need for protective actions.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Euronews Business",
        "title": "Caught in the crossfire: Cognac pays the price for Europe’s trade wars",
        "url": "https://urgent.news/2026/09/26/caught-in-the-crossfire-cognac-pays-the-price-for-europes-trade-wars-9921773",
        "published": "2026-09-26T06:00:04.000Z"
      }
    ]
  },
  "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."
}