2026-01-21 09:03:00 —
Former President Trump has threatened tariffs of up to 200% on French wines, escalating trade tensions and raising concerns for both French and Italian sparkling wine producers.
- Former President Trump proposed the tariffs in response to France sending troops to Greenland and French President Macron’s decision not to join a proposed Peace Board on Gaza.
- The potential tariffs could significantly impact Champagne sales in the United States, its largest market.
- Italian Prosecco producers, while competitors to French Champagne, expressed concern that the unpredictable trade actions could also affect them.
- European stock exchanges reacted negatively to the news, with shares of LVMH, owner of brands like Moët & Chandon, experiencing a sharp decline.
Former President Trump has proposed imposing tariffs of up to 200% on French wines, a move he termed a “war on Champagne,” according to a report by Il Sole 24 Ore. The threat stems from France’s decision to send a contingent of soldiers to Greenland and, more recently, French President Emmanuel Macron’s refusal to participate in a proposed Peace Board on Gaza.
The initial threat involved a potential 10% duty on all countries sending soldiers to Greenland, escalating to 25%. This was then followed by a specific threat targeting France with the possibility of duties reaching 200%, the report stated.
The announcement has already had a negative impact on European stock exchanges, with shares of LVMH, the French luxury goods conglomerate that owns brands such as Moët & Chandon, Krug, and Veuve Clicquot, falling sharply, Il Sole 24 Ore reported.
The Comité Champagne, the organization representing French Champagne houses, has not yet released a public statement. In 2025, Champagne producers created 266 million bottles, with over half – 156 million – sold internationally. The United States is the largest export market for Champagne, absorbing approximately 27 million bottles annually, followed by the United Kingdom (22 million) and Japan (12 million), according to the report.
Why It Matters
While the proposed tariffs directly target French wines, the situation highlights the ongoing volatility of international trade relations under the potential return of Trump to the presidency. The unpredictable nature of these actions creates uncertainty for businesses across multiple sectors, not just within the wine industry. The threat of escalating tariffs could disrupt established trade patterns and force producers to seek alternative markets, potentially leading to higher prices for consumers.
Italian Prosecco producers, as key competitors to Champagne, are also wary of the situation. Luca Giavi, director of the Prosecco Doc Consortium, stated, “First of all, we create different products that are aimed at completely different markets – begins the director of the Prosecco Doc Consortium, Luca Giavi -. We therefore do not see such an eventuality as an opportunity also because we prefer to compete and win in the market. The comparison between Prosecco and Champagne does not belong to us. French producers represent a universe that we look at with respect, from which we have learned a lot on many aspects and for this reason such news is not a reason for satisfaction.” He emphasized a preference for fair competition over benefiting from a competitor’s difficulties.
The United States is also the primary market for Prosecco, with over 120 million bottles consumed annually. Despite existing duties, Prosecco sales in the U.S. increased by 2.1% in volume and 2.3% in value as of last October, according to the report.
“We prefer to compete and win in the market,” said Luca Giavi, director of the Prosecco Doc Consortium, underscoring the industry’s preference for fair competition over protectionist measures.
Time.news based this report in part on reporting by Il Sole 24 Ore and added independent analysis and context.
