In the cognac region of southwest France, Christophe Fillioux's family-owned estate has a rich history spanning five generations, withstanding various challenges like wars and financial crises. Recently, Fillioux made the tough decision to uproot some of his vineyards due to the impact of U.S. President Donald Trump's imposition of 20% tariffs on all European goods. This move has intensified the difficulties for France's nearly $3 billion cognac industry, already facing challenges from global trade disputes.

The cognac sector, comprising 4,000 growers in the region, had been grappling with reduced sales to China following Beijing's tariffs in response to the European Union's duties on Chinese electric vehicles. Sales to China, the second-largest market for cognac by volume, dwindled significantly in the wake of these trade tensions.

With the United States being the largest consumer of cognac globally, accounting for half of all bottles sold, Trump's tariffs have added to the concerns of many growers. Fillioux, the 45-year-old proprietor of the Jean Fillioux cognac house, has already removed a portion of his vineyards and plans to extract more in the coming year, aligning with industry efforts to support growers during this challenging period.

The potential escalation of tariffs to 200% on European wine and spirits by Trump, in response to European duties on U.S. bourbon, presents a looming threat. Cognac exports to the U.S. last year totaled approximately 1 billion euros, with the U.S. also serving as France's primary wine export market. Recognizing the precarious situation, Fillioux's estate is exploring new markets in countries like Thailand, Vietnam, and Nigeria as a strategic response.

Despite the uncertainties and challenges posed by the trade tensions with major markets like China and the U.S., which account for a substantial portion of cognac revenues, Fillioux remains optimistic and resilient. He acknowledges the inherent ups and downs in a vintner's livelihood and is working proactively to adapt to the changing landscape of the industry affected by a broader global slowdown in luxury spending.