PARIS, March 16 (Reuters) - French Prime Minister Francois Bayrou suggested that the European Union's decision to target American whiskey in response to U.S. tariffs may have been a mistake, urging talks to prevent further detrimental duties on France's cognac industry.
In light of U.S. President Donald Trump's recent threat to levy tariffs on all wines and other alcoholic products from the EU unless the planned tax on U.S. bourbon is abandoned, Bayrou acknowledged that missteps may have occurred. He noted, "Kentucky bourbon has been included as if it were a trade threat," in the EU's retaliatory measures against U.S. steel and aluminum tariffs, emphasizing that the list of products chosen had not been thoroughly scrutinized.
Bayrou conveyed his concerns during an interview with France Inter radio, pointing out that the potential imposition of tariffs by Trump on EU wine and spirits has raised alarms among European producers, especially French cognac makers already affected by Beijing's tariffs in a separate trade dispute involving EU duties on Chinese electric cars.
Following a meeting with representatives from the cognac industry, Bayrou expressed hope that negotiations with Washington and Beijing could settle the tariff conflict. The EU is set to implement its initial round of counter-tariffs against U.S. goods, including bourbon, on April 1. Though Bayrou is anticipated to visit the U.S. to address the cognac issue, specific dates for the visit have yet to be announced.