FRANCE - Christophe Fillioux's family estate in the cognac region of southwest France has survived for five generations, through wars and financial crises.
Now, though, he has started to tear up some of his vineyards by the roots. U.S. President Donald Trump's decision this week to slap 20 percent tariffs on all European goods is deepening the pain for France's nearly USD 3 billion cognac industry, which was already being buffeted by global trade tensions.
In October, the region's 4,000 growers were targeted by Beijing with tariffs following the European Union's levies on Chinese-made electric vehicles. Since then, cognac sales to China, its second-largest market by volume, have plunged by more than half. With the U.S. - the world's top cognac consumer - accounting for one out of every two bottles sold, Trump's tariffs have left many growers apprehensive.
Fillioux, the 45-year-old owner and master blender of the Jean Fillioux cognac house, founded in 1894 by his great-great-great grandfather, had already torn out half a hectare of old vineyards. He plans to uproot another hectare-and-a-half next year as part of an industry-wide plan to help growers through the crisis. (Reuters)