US tariffs could make your next Champagne bottle way more expensive

French champagne producers are bracing for major setbacks as rising US tariffs threaten to spoil the party in one of France’s most successful export markets. With the US imposing a 20% tariff on French wines and spirits, and possibly more on the way, small winemakers and luxury giants alike are feeling the pressure.

The United States has long been the largest market for French champagne, with American consumers showing a strong appetite for luxury bubbles. But recent trade tensions are putting that relationship at risk. At the center of the storm is a renewed tariff dispute between Washington and Brussels, with French exports getting caught in the middle.

Charles Fourny, a fifth-generation champagne producer in France’s Côte des Blancs region, says the uncertainty is deeply unsettling. After spending over two decades building trust with US distributors, he fears those efforts could unravel. With widespread concern for the industry, he said, “We do not trust because now we say we don’t know what will happen,”.

To cushion the blow, the European Commission has stepped in with a €5 billion ($5.4 billion) emergency support package to help French exporters move their goods to the US ahead of additional tariff hikes. The aid scheme, approved in early May, is intended to fast-track logistics and reduce the financial impact of the duties.

Still, the outlook remains grim. The Federation of French Wine and Spirit Exporters predicts a 20% decline in sales to the US this year. Industry leaders warn that higher prices may push American retailers and consumers toward cheaper alternatives from countries not hit by the tariffs.

The ripple effects are already visible. Moët Hennessy, the luxury wine and spirits division of LVMH, reported slowing sales and falling profits, blaming weak demand in both the U.S. and China. For high-end producers relying heavily on the US market, this adds to a growing list of concerns — from inflation to shifting consumer tastes.

As trade tensions persist, many French champagne makers are now eyeing alternative markets in Asia and the Middle East. But rebuilding that kind of demand will take time.

In the short term, the sparkle in French champagne’s largest export market may continue to dim. For producers big and small, the path ahead looks increasingly uncertain.