Faced with Trump's new tariff, French wine producers expect rough times ahead

CHABLIS, France (AP) — France’s wine producers are deeply concerned that the 20% tariff slapped by President Donald Trump will deal a severe blow to the sector that relies on the U.S. as its top market.

French President Emmanuel Macron on Thursday warned of “massive” impact as he met with representatives of the most affected industries, including wine and spirits.

Vincent Dampt, owner of a wine domain in Chablis, in the Burgundy region, called the tariffs “bad news."

“But it could be worse,” Dampt added. “I was really stressed with the possibility of having this 200% tariff.”

Trump had threatened last month a 200% tariff on European wine, Champagne and spirits if the EU went forward with a planned tariff on American whiskey.

Dampt suggested he preferred a negotiated outcome between the EU and the U.S., saying a full on trade war is bad for business.

“We’re not at school,” he said. “If you answer too quickly with the same violence, it’s not constructive.”

A third generation winemaker, Dampt ships about 30% of his production to the U.S. — roughly 25,000 bottles. A drop in sales there would severely impact his business.

Chablis white wine was also the target of tariffs under the first Trump administration at the height of the spat between aviation giants Boeing and Airbus.

There's only one way for Dampt to fight back and maintain a presence in the U.S.: bring down his prices and cut his profit. But he said "it's not an easy thing to do" especially now when he had already lost about 50% of his crop last year, mostly due to hail storms and killer frost.

The Bourgogne Wine Board said in a statement it expects the industry to be “heavily affected” because the U.S. is the leading export market of wines from Burgundy.

“While this new measure will affect exports, potentially costing Bourgogne wines up to 100 million euros, it will not bring trade to a sudden halt, as would have been the case with higher tariffs," the trade association noted.

The U.S. remained last year the largest export market for wines produced in the EU, with 4.88 billion euros ($5.36 billion), the Comité Européen des Entreprises Vins (European Committee of Wine Businesses), or CEEV, said in a statement. Exports to the U.S. accounted for 28% of the EU’s total wine export value, it said.

The new tariff would create "economic uncertainty and result in layoffs, deferred investments and price increases,” said Marzia Varvaglione, CEEV president. “There is no alternative wine market that could compensate the loss of the U.S. market."

Macron denounced the tariffs as "brutal and unfounded.” In addition to the wine industry, the meeting at the Elysee palace gathered representatives from aeronautics, chemical and metal sectors, electronics, health, luxury, cosmetics and food industry.

Macron said France is likely to be slightly less impacted than some of its neighbours, because exports to the U.S. represent 1.5% of France's GDP, while they represent over 3% for Italy and 4% for Germany. Yet, “it’s not a small thing,” Macron said.

He emphasized that the U.S. economy will first experience the negative impact of the tariffs.

“One thing is certain, with that decision, the U.S. economy and Americans, businesses and citizens, will emerge weaker and poorer than yesterday,” Macron said.

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

A glass of Chablis wine is seen in the office of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Bottles of Chablis wine are stored at the wine making facility of winegrower Vincent Dampt, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

A tractor driving through the Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

View of Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

View of Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

View of Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

A tractor driving through the Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

A view of Chablis vineyards in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Winegrower Vincent Dampt talks to the Associated Press, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

Winegrower Vincent Dampt serves a glass of Chablis wine in his office, in Chablis, Burgundy region, eastern France, Thursday, April 3, 2025. (AP Photo/Thibault Camus)

The U.N. Security Council scheduled an emergency meeting Thursday to discuss Iran's deadly protests at the request of the United States, even as President Donald Trump left unclear what actions he would take against the Islamic state.

Tehran appeared to make conciliatory statements in an effort to defuse the situation after Trump threatened to take action to stop further killing of protesters, including the execution of anyone detained in Tehran’s bloody crackdown on nationwide protests.

Iran’s crackdown on the demonstrations has killed at least 2,615, the U.S.-based Human Rights Activists News Agency reported. The death toll exceeds any other round of protest or unrest in Iran in decades and recalls the chaos surrounding the country’s 1979 Islamic Revolution.

The sound of gunfire faded Thursday in the capital, Tehran. The country closed its airspace to commercial flights for hours without explanation early Thursday and some personnel at a key U.S. military base in Qatar were advised to evacuate. The U.S. Embassy in Kuwait also ordered its personnel to “temporary halt” travel to the multiple military bases in the small Gulf Arab country.

Here is the latest:

Abdul Malik al-Houthi, leader of the Iran-backed Yemeni rebel group, said on Thursday that “criminal gangs” were responsible for the situation in Iran, accusing them of carrying out an “American-Israeli” scheme.

“Criminal gangs in Iran killed Iranian citizens, security forces and burned mosques,” he said without providing evidence. “What’s being committed by criminal gangs in Iran is horrific, bearing an American stamp as it includes slaughter and burning some people alive.”

He also said that the U.S. imposed economic sanctions on Iran to create a crisis leading to the current issues in the country with the end goal of controlling Iran.

Yet he said the U.S. has “failed in Iran” and that Iranians “will not yield to America.”

The president of the European Union’s executive arm says the 27-member bloc is looking to strengthen sanctions against Iran as ordinary Iranians continue their protests against Iran’s theocratic government.

Commission President Ursula von der Leyen said Thursday following a meeting of the EU’s commissioners in Limassol, Cyprus that current sanctions against Iran are “weakening the regime.”

Von der Leyen said that the EU is looking to sanction individual Iranians —apart from those who belong to Iran’s Islamic Revolutionary Guard — who “are responsible for the atrocities.”

She added that the people of Iran who are “bravely fighting for a change” have the EU’s “full political support.”

Canada’s foreign minister says a Canadian citizen has died in Iran “at the hands of the Iranian authorities.”

“Peaceful protests by the Iranian people — asking that their voices be heard in the face of the Iranian regime’s repression and ongoing human rights violations — has led the regime to flagrantly disregard human life,” Canadian Foreign Affairs Minister Anita Anand posted on social media Thursday.

“This violence must end. Canada condemns and calls for an immediate end to the Iranian regime’s violence,” she added.

Anand said consular officials are in contact with the victim’s family in Canada. She did not provide details.

The International Federation of Red Cross and Red Crescent Societies announced Thursday that a local staff member was killed and several others were wounded during the deadly protests in Iran over the weekend.

Amir Ali Latifi, an Iranian Red Crescent Society worker, was working in the country’s Gillan province on Jan. 10 when he was killed “in the line of duty,” the organization said in a statement.

“The IFRC is deeply concerned about the consequences of the ongoing unrest on the people of Iran and is closely monitoring the situation in coordination with the Iranian Red Crescent Society,” the statement continued.

U.S. President Donald Trump has hailed as “good news” reports that the death sentence has been lifted for an Iranian shopkeeper arrested in a violent crackdown on protests.

Relatives of 26-year-old Erfan Soltani had said he faced imminent execution.

Trump posed Thursday on his Truth Social site: “FoxNews: ‘Iranian protester will no longer be sentenced to death after President Trump’s warnings. Likewise others.’ This is good news. Hopefully, it will continue!”

Iranian state media denied Soltani had been condemned to death. Iranian judicial authorities said Soltani was being held in a detention facility outside of the capital. Alongside other protesters, he has been accused of “propaganda activities against the regime,” state media said.

Trump sent tensions soaring this week by pledging that “help is on its way” to Iranian protesters and urging them to continue demonstrating against authorities in the Islamic Republic.

On Wednesday Trump signaled a possible de-escalation, saying he had been told that “the killing in Iran is stopping.”

In a joint statement, the foreign ministers of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union’s main foreign policy chief said the G7 members were “gravely concerned” by the developments surrounding the protests, and that they “strongly oppose the intensification of the Iranian authorities’ brutal repression of the Iranian people.”

The statement, published on the EU’s website Thursday, said the G7 were “deeply alarmed at the high level of reported deaths and injuries” and condemned “the deliberate use of violence” by Iranian security forces against protesters.

The G7 members “remain prepared to impose additional restrictive measures if Iran continues to crack down on protests and dissent in violation of international human rights obligations,” the statement said.

China’s Foreign Minister Wang Yi has spoken with his counterpart in Iran, who said the situation was “now stable,” China’s Ministry of Foreign Affairs said.

Abbas Araghchi said “he hoped China will play a greater role in regional peace and stability” during the talks, according to the statement from the ministry.

“China opposes imposing its will on other countries, and opposes a return to the ‘law of the jungle’,” Wang said.

“China believes that the Iranian government and people will unite, overcome difficulties, maintain national stability, and safeguard their legitimate rights and interests,” he added. “China hopes all parties will cherish peace, exercise restraint, and resolve differences through dialogue. China is willing to play a constructive role in this regard.”

“We are against military intervention in Iran,” Turkish Foreign Minister Hakan Fidan told journalists in Istanbul on Thursday. “Iran must address its own internal problems… They must address their problems with the region and in global terms through diplomacy so that certain structural problems that cause economic problems can be addressed.”

Ankara and Tehran enjoy warm relations despite often holding divergent interests in the region.

Fidan said the unrest in Iran was rooted in economic conditions caused by sanctions, rather than ideological opposition to the government.

Iranians have been largely absent from an annual pilgrimage to Baghdad, Iraq, to commemorate the death of Imam Musa al-Kadhim, one of the twelve Shiite imams.

Many Iranian pilgrims typically make the journey every year for the annual religious rituals.

Streets across Baghdad were crowded with pilgrims Thursday. Most had arrived on foot from central and southern provinces of Iraq, heading toward the shrine of Imam al-Kadhim in the Kadhimiya district in northern Baghdad,

Adel Zaidan, who owns a hotel near the shrine, said the number of Iranian visitors this year compared to previous years was very small. Other residents agreed.

“This visit is different from previous ones. It lacks the large numbers of Iranian pilgrims, especially in terms of providing food and accommodation,” said Haider Al-Obaidi.

Europe’s largest airline group said Thursday it would halt night flights to and from Tel Aviv and Jordan's capital Amman for five days, citing security concerns as fears grow that unrest in Iran could spiral into wider regional violence.

Lufthansa — which operates Swiss, Austrian Airlines, Brussels Airlines and Eurowings — said flights would run only during daytime hours from Thursday through Monday “due to the current situation in the Middle East.” It said the change would ensure its staff — which includes unionized cabin crews and pilots -- would not be required to stay overnight in the region.

The airline group also said its planes would bypass Iranian and Iraqi airspace, key corridors for air travel between the Middle East and Asia.

Iran closed its airspace to commercial flights for several hours early Thursday without explanation.

A spokesperson for Israel’s Airport Authority, which oversees Tel Aviv’s Ben Gurion Airport, said the airport was operating as usual.

Iranian state media has denied claims that a young man arrested during Iran’s recent protests was condemned to death. The statement from Iran’s judicial authorities on Thursday contradicted what it said were “opposition media abroad” which claimed the young man had been quickly sentenced to death during a violent crackdown on anti-government protests in the country.

State television didn’t immediately give any details beyond his name, Erfan Soltani. Iranian judicial authorities said Soltani was being held in a detention facility outside of the capital. Alongside other protesters, he has been accused of “propaganda activities against the regime,” state media said.

New Zealand’s Foreign Minister Winston Peters said Thursday that his government was “appalled by the escalation of violence and repression” in Iran.

“We condemn the brutal crackdown being carried out by Iran’s security forces, including the killing of protesters,” Peters posted on X.

“Iranians have the right to peaceful protest, freedom of expression, and access to information – and that right is currently being brutally repressed,” he said.

Peters said his government had expressed serious concerns to the Iranian Embassy in Wellington.

Women cross an intersection in downtown Tehran, Iran, Thursday, Jan. 15, 2026. (AP Photo/Vahid Salemi)

A demonstrator lights a cigarette with a burning poster depicting Supreme Leader Ayatollah Ali Khamenei during a rally in support of Iran's anti-government protests, in Holon, Israel, Wednesday, Jan. 14, 2026. (AP Photo/Ohad Zwigenberg)

Protesters participate in a demonstration in support of the nationwide mass protests in Iran against the government, in Berlin, Germany, Wednesday, Jan. 14, 2026. (AP Photo/Ebrahim Noroozi)

Protesters participate in a demonstration in support of the nationwide mass protests in Iran against the government, in Berlin, Germany, Wednesday, Jan. 14, 2026. (AP Photo/Ebrahim Noroozi)