Every year, French Champagne producers engage in nearly a billion dollars of trade with the United States. However, recently in Épernay, the focus wasn’t on the massive business figures but instead on the number 200, which represented the looming tariff percentage.
President Trump’s talk of implementing a 200% tariff on Champagne, along with other European wines and spirits, has sent shockwaves through Épernay, the epicenter of sparkling wine. This trade war flared up after the European Union retaliated against Trump’s steel and aluminum tariffs with its own tariffs on American goods.
In Épernay, this triple-digit threat hit like a lightning bolt. It caused a stir among everyone from field workers and small village producers to the esteemed Champagne houses lining the Avenue de Champagne, Épernay’s central and opulent UNESCO World Heritage site.
“A tariff like this, at 200%, is meant to ensure Champagne won’t be shipped to the U.S.,” explained Calvin Boucher, a manager at Michel Gonet, a distinguished 225-year-old Champagne house on the avenue. With American wine merchants and restaurants accounting for 20 to 30% of their annual 200,000-bottle production, such a tariff could be devastating. “A bottle of Champagne selling for $125 could suddenly cost over $375,” he noted.
At the core of a region renowned for producing extraordinary bubbly, Épernay relies heavily on the U.S., its largest export market, where about 27 million bottles were shipped in 2023, valued around 810 million euros (or approximately $885 million).
Spanning over 130 square miles from Reims to the Aube river, the Champagne region is awash in Chardonnay, Pinot Noir, and Meunier grapes. Under France’s rigorous Appellation d’Origine system, only sparkling wine produced here through specific methods can be rightfully called Champagne.
With over 4,000 independent winemakers and 360 Champagne houses contributing to an annual output of approximately 300 million bottles, there’s an additional billion resting in cellars. Major brands like Dom Pérignon, Veuve Clicquot, and Moët & Chandon, part of LVMH, not only dominate production and export, they also account for a third of all sales.
Despite these impressive figures, the looming tariffs stand as a sobering threat. Just steps away from the Avenue de Champagne, Nathalie Doucet, president of Besserat de Bellefon, watched the unfolding trade war with unease. Her house ships 10% of its premium Champagne to the United States, and the news is unsettling. “We’ll wait and see, but this isn’t good news,” she remarked. Her Champagne, noted for its crisp acidity and fine bubbles, is crafted through a painstaking low-pressure process.
The situation compounds an already challenging year marked by poor weather hurting harvests and a dip in consumption as younger consumers turn to cocktails and craft beers instead. Post-pandemic, Champagne sales dipped by 9% last year.
On top of these challenges, Europe is navigating conflicts in Ukraine and Gaza. Now, the trade tension with the U.S., a long-standing ally, seems especially unjust, impacting those like Doucet, who observes the situation as collateral damage.
“It feels like an intentional punishment,” commented Cyril Depart, proprietor of the Salvatori wine shop, which features a diverse selection of artisanal Champagnes. His wife, an export manager at a Champagne company, had already begun crunching numbers on the potential impact.
Leah Razzouki, whose family has deep roots in the Champagne industry, expressed her frustration at the situation. “Small producers who are our friends will suffer most,” she said.
A trade war wouldn’t just affect grand Champagne houses; it would send ripples through American importers and distributors, jeopardizing countless small businesses.
Michael Reiss, president of Vineyard Road, a small vineyard importer and distributor in New England, voiced concerns for businesses like his, noting that the tariffs could drastically hurt small restaurants and retail shops. An unpredictable trade environment often means postponed investments and challenges along the supply chain. Mr. Reiss explained how even a 25% tariff can bloat costs by 40 to 60%, due to incremental mark-ups.
A 200% tariff could obliterate the joy derived from purchasing luxury items like Champagne, he feared.
Even within Épernay’s Champagne Museum, chatter about Trump’s tariffs overshadowed discussions on the history of Champagne, a drink that dazzled royal tables as far back as the 17th century, earning it the moniker “the king of wines.”
“French people are waking up to what’s happening in the US and are beginning to discuss boycotting American products,” said Sacha Raynaud, on a museum visit with a friend.
In the sunlit vineyards, field hands were already tying vines for the upcoming spring season, but jobs weren’t safe there either, according to Patrick Andrade, who runs a vineyard maintenance company. Should sales falter, there would be fewer hands needed for tasks, less demand for bottles and corks, and, in dire scenarios, the prospect of uprooting vines loomed.
Calling the trade war “foolish,” France’s finance minister, Eric Lombard, announced he would soon head to Washington in hopes of calming tensions. Champagne’s major producers have remained mum, as companies wait out the threat and hope for de-escalation.
LVMH Moët Hennessy Louis Vuitton, holding a significant presence in the U.S. market, declined to comment on the situation.
American tourists snapping photos near Dom Pérignon’s statue by the Moët & Chandon mansion on the Avenue de Champagne remained blissfully unaware of the growing concerns within, as staff refrained from discussing tariffs. Locals whispered rumors that big producers were indeed upset, yet hopeful the matter would resolve quietly, especially given Bernard Arnault’s longstanding rapport with President Trump.
Speculations aside, uncertainty casts a long shadow over business operations. Back at Michel Gonet, Boucher gestured towards popular cuvées desired by their U.S. clients. “It’s unnerving not knowing whether the tariffs will even materialize,” he reflected. “This situation benefits no one.”
