The European Commission has approved a €5 billion French scheme focused on supporting wine and spirits exports to the United States. Revealed on Thursday, the approval comes as France works to assist its producers in clearing inventory ahead of impending U.S. tariffs. The program, scheduled to run from May 8 to July 8, 2025, operates under EU state aid regulations and serves as a temporary measure.
The scheme enables exporters to utilize a re-insurance mechanism that provides short-term guarantees for businesses to protect themselves against commercial and political risks. The strategy anticipates facilitating smoother transatlantic shipments for French producers, particularly during market instability.
The scheme’s timeline aligns with a temporary halt in U.S. tariff policies. President Donald Trump had initially proposed a 20% tariff on all European Union imports but later put those plans on hold. French wine exporters expect that American buyers will boost the orders during this period, capitalizing on the absence of new tariffs.
The European Commission also put forward possible retaliatory measures that could impact €95 billion worth of U.S. imports if ongoing trade talks with Washington fail to resolve existing disputes.
French officials have stressed that the export support initiative is a temporary measure aimed at offering relief while diplomatic negotiations progress. The program is projected to assist a diverse group of producers within France’s wine and spirits industry.
The United States continues to be the top destination for French wine and spirits. In 2024, exports to the U.S. rose by 5%, totaling €3.8 billion in value.
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