French wine and cheese makers say US tariffs would hit hard

PARIS: French cheese and wine producers have warned of the damaging impact that U.S. President Donald Trump's threatened 30% tariffs on imports from the EU would have on the country's agriculture industry.

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France's food and dairy industries warn that a 30% US import duty could severely hurt exports, especially cheese and milk.
The French sector may lose millions in US sales as higher prices could turn away inflation-hit American buyers.
The EU prefers dialogue with the U.S. and has extended its suspension of counter-tariffs while talks continue.

A 30% duty would be "disastrous" for France's food industry, said Jean-François Loiseau, president of food lobby group ANIA, while Francois Xavier Huard, CEO of dairy association FNIL, said: "It's a real shock for milk and cheese producers - this is an important market for us".

"It's a new environment we will have to get used to - I don't think this is temporary," Huard told Reuters on Sunday, referring to shifting rules and flaring trade tensions.

He noted the industry may have to rethink its strategy relating to the markets in which it operates.

France's dairy sector exports nearly half of its production, including to the United States, which imports mostly cheeses such as Brie but also fresh products like yogurt and butter.

It risks losing annual sales worth tens of millions of euros, said Huard, noting the sector sells 350 million euros ($409 million) worth of dairy products to the U.S. annually.

French food exporters are worried that additional import taxes could push up prices of their products beyond the reach of inflation-strapped shoppers in the United States.

"Products like wine, especially, are consumed for pleasure -if you have less money to spend, you might forgo the purchase," said Yannick Fialip, head of association CNPA, which promotes French food exports.

"We will be less competitive," Fialip added, noting a weaker dollar had already added pressure on exports to the U.S.

The European Union said on Sunday it prefers a negotiated solution on trade with the United States, with European Commission President Ursula von der Leyen saying the bloc would extend its suspension of countermeasures to U.S. tariffs until early August.