French Cognac Makers Ramp Up U.S. Exports Ahead of Trump Inauguration, Data Shows

French cognac makers increased shipments to the United States in December, trade data showed, as distributors fill stocks to prepare for possible new tariffs while demand at home shows signs of improving.

France's cognac industry is particularly exposed to the U.S. market, its largest by volume, and memories of a trade dispute during President-elect Donald Trump's first term raised fears it could return.

LVMH's Hennessy, the largest producer, increased the amount of cognac it delivered by 17% compared to last month and by more than a third compared to the same month a year earlier, U.S. import records from ImportYeti showed .

Courvoisier, owned by Campari, more than doubled its exports to the country in December compared to the previous month and the same month last year.

Hennessy declined to comment, while Campari did not immediately respond to a Reuters request for comment.

The data was part of a broader pattern of rising U.S. cognac exports in late 2024, an industry source said on Friday, driven by the prospect of additional tariffs under incoming President Donald Trump and an overall improvement. of the market.

Trump has threatened to impose blanket 10% tariffs on foreign-made goods in a bid to eliminate the country's trade deficit. The European spirits industry could be further hit by potential additional retaliatory measures should an old trade dispute between the United States and the European Union from Trump's first presidential term erupt.

Meanwhile, demand for luxury goods in the United States showed signs of improvement.

US credit card spending on luxury brands in December turned positive for the first time in more than two years, while Swiss jewelry and watch maker Richemont reported strong US sales in the final quarter of 2024.

Analysts at Barclays also pointed to a positive trend, saying in a recent note that LVMH's wine and spirits division “has started to see some improvement for Hennessy in the United States.”

France's cognac industry was hit in 2024 by weak global demand and trade tensions with China, another major market.

Cognac exports to China fell 75% in December compared to last year, the industry source said, adding that the recent ban on cognac products at all duty-free outlets also played a role.