The Globe and Mail reports in its Monday, May 12, edition that France's champagne producers are preparing for disruption due to global trade tensions jeopardizing their key export market, the United States, and warn of limited capacity to absorb new tariffs. The Globe's Mathilde Augustin writes that the temporary 10-per-cent tariff is much lower than the original 200 per cent proposed by President Donald Trump for European wines. The U.S. has postponed the higher tariffs until July 9, allowing the EU to negotiate a trade deal, while wine producers await developments. Manuel Janisson, the winemaker who has been behind Costco's $29 Kirkland Champagne for the past 20 years, worries that tariffs could finally put the brakes on demand for Costco's Champagne. He says, "It's stressful, and even though we're well-positioned on price, any increase could cause sales to drop." Costco is mum on whether the price of its Kirkland Champagne will increase. Mr. Janisson says: "We don't have the margins necessary to pay for these tariffs. When working with large retailers like Costco, we need to be very productive. So, of course, we don't have the same margins as some other brands."
© 2025 Canjex Publishing Ltd. All rights reserved.