France says Trump must stop threatening Champagne tariffs

• France warns of retaliation if US imposes tariffs on champagne and wine
• US imports €750M of French champagne yearly, 20% of France's total exports.
• Europe debates tough trade response, but member states differ on measures

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France’s minister for trade, Nicolas Forissier, slammed Donald Trump’s threats to slap tariffs on champagne and repeated pledges to retaliate if the US president ever followed through.

Trump floated a 200% levy on wines and champagne earlier this week in response to Paris’s rejection of an invitation to join his so-called Board of Peace. He has since dropped separate plans to impose tariffs on European nations opposing his bid to take possession of Greenland, helping to cool tensions.

France remains wary of repeated threats against its exports of alcoholic drinks, however, with a large share going across the Atlantic.

“The US is a very important destination for wine and spirits and especially champagne,” Forissier told Bloomberg Television’s Francine Lacqua at the World Economic Forum in Davos, Switzerland. “It’s not acceptable to have this kind of weapon, taking some sectors which are very symbolic and important for us as hostage, this is not acceptable and if it was done there would be some responses.”

At €750 million ($880 million) a year, flows of champagne to the US make up around 20% of France’s exports of the drink. The share for wine is around the same, with Bordeaux and Burgundy exports there totaling around €770 million.

Before Trump’s climbdown, France was among the nations calling for a tough response to tariff threats, including the activation of Europe’s most powerful trade-retaliation tool, the so-called anti-coercion instrument.

Forissier said Europe is gradually refining its trade stance as some members are not ready to use the strongest measures. The trade minister also said there are differences between European member states on how to deal with China’s surpluses and that countries don’t have the same immediate interests.

“Where is the good position between national and European interests? This is very difficult of course, but little by little we are improving,” he said on Thursday. “Trump and the tectonic plate movements we are facing oblige us to react and change our minds and the way we are acting.”