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SA touted as new market as Trump’s tariffs threaten champagne sales

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South Africa (SA) has emerged as one of the key alternative markets for French champagne producers.

This comes as United States (US) President Donald Trump threatens steep 30% tariffs on European Union exports, a move that could shake up global sales of the luxury beverage.

Producers from France’s famed Champagne region are scrambling to offset potential losses from the US, which accounts for 10% of all champagne exports by volume and 15% by value. Industry leaders say the tariffs will drive up prices for American consumers and risk job cuts across the supply chain, including in the US.

“The repercussions for family-run champagne houses will be severe, from lost bottle sales to reduced grape harvest quotas,” warned Stéphane Vignon, whose family has been producing champagne in Verzenay since 1946.

Maxime Toubart, Chairperson of the Champagne Committee, said producers must urgently explore new destinations, listing Brazil, Southeast Asia and South Africa among the most promising alternatives. With 70% of champagne exports currently limited to five countries, the looming tariffs highlight the risks of overreliance on a narrow market base.

“SA represents a growing market for luxury beverages and could play an important role in absorbing some of the surplus,” Toubart said, while noting that replacing US sales remains a tall order.

“You can’t simply redirect three million bottles meant for the US to Japan or elsewhere overnight,” he added.

According to France’s agriculture office, FranceAgriMer, champagne exports fell by more than 10% last year but saw a modest rebound in early 2025, ahead of a 10% tariff hike in April. The proposed jump to 30% could derail that recovery.

Champagne makers fear the tariffs will damage longstanding trade relationships. “We have built trust through the quality of our wines,” said Hugo Drappier of Champagne Drappier. “Let’s hope that is not undone.”

–Reuters/ChannelAfrica–