In the idyllic Cognac region of southern France, Trump’s tariffs threaten a centuries-old way of life
The impact of Trump’s tariffs is reaching deep into every economy.
We travelled into the French rural heartland, heading for Cognac – the home of French brandy.
It is only half the size of Surrey but its exports to America are worth €1bn a year and that trade is now severely threatened.
The first buds are out on the vines of Amy Pasquet’s vineyard.
An American, she has married into the industry and with her French husband owns JLP Cognac.
She knows more than most the bond brandy has formed between their two countries that goes back to the war.
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Ms Pasquet said: “A lot of the African-American soldiers had really loved their experience here and had brought back the cognac. And I think that stayed because this African-American community truly is a community and they want to drink like their grandfather did.”
The ties remain with rappers like Jay Z’s love for cognac.
However, Ms Pasquet adds: “There’s also this other community of people who have been drinking bourbon for a long time, love bourbon, but find the prices just outrageous today. So they want to try something different.”
Amy Pasquet owns JLP Cognac with her husband
JLP’s products were served at New York’s prestigious Met Gala.
They were preparing to launch new product lines in the US. But now that’s in doubt.
It is hard being an American in France now, Ms Pasquet says.
Her French neighbours are appalled by what US President Donald Trump is doing.
She continues: “They’re like, okay, America’s forgotten how close France and America are as far as (their) relationship is concerned. And I think that’s hurtful on both sides. I think it’s important to remember that the US is many things, and not just this one person, and there are millions of inhabitants that didn’t vote for him.”
A fresh challenge for a centuries-old tradition
Making cognac takes years, using techniques that go back centuries. In another vineyard we met Pierre Louis Giboin whose family have been doing it for more than 200 years.
In a cellar dating back to the French Revolution, barrels of oak sit under thick cobwebs, ageing the brandy.
The walls are lined with a unique black mould that thrives off the vapours of cognac.
They have seen threats come and go over those centuries, wars, weather, pestilence. But never from a country they regard as one of their oldest allies and best of customers.
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Pierre Louis Giboin’s cellar dates back to the French revolution
Mr Trump’s tariffs, says Mr Giboin, now threaten a way of life.
“It’s at the end of like very good times in the Cognac region. It’s been like 10 years when everything’s been perfect, we have good harvest, we sell really easily all the stock, but now I mean it’s the end.”
Ms Pasquet and Mr Giboin are unusual.
Most cognac makers sell their produce through the drink’s four big houses, Hennessy, Remy Martin, Martell and Courvoisier.
Some have been told the amounts they can sell have been drastically reduced.
Independents though like them must find new markets if the tariff threat persists.
Confusion away from the chaos
Outside in the dappled light of a Cognac evening Mr Giboin and I toast glasses of pineau – the diluted form of cognac drunk as an aperitif.
In this idyllic corner of France, a world away from Washington, Mr Trump’s trade war on Europe simply makes no sense.
“He’s like angry against the whole world and the way he talks like that Europe the EU was made against the US to cheat on the US. It’s just crazy to think like this,” Mr Giboin says.
It’s not just what Mr Trump’s done. It’s how Europe now strikes back that concerns the French. And it’s not just in Cognac where they’re concerned
France exports more than €2bn worth of wine to America.
In the heart of the Bordeaux wine region, Sylvie Courselle’s family have been making wine since the 1940s at their Chateau Thieuley vineyard.
It’s bottling season but they can’t prepare the wine headed for America while everything is up in the air.
Showing me the unused reels of US labels for her wine she told me she was losing sleep over the uncertainty.
Later she was meeting with her American distributors.
Gerry Keogh sells Ms Courselle’s wine across the US.
He says the entire industry is reeling
Sylvie Courselle with distributers
The Chateau Thieuley vineyard in the Bordeaux wine region
“I think it’s like anything. You don’t really believe it’s happening. And even when you’re in the midst of it, it was kind of like 9/11.
“You’re like… This is actually happening. It’s unbelievable. And when you start seeing the repercussions from the stock market, et cetera, and how it’s impacting every level, it’s quite shocking.”
They know the crisis is far from over and could now escalate.
“We feel stuck in the middle of this commercial war and we don’t have the weapons to fight, I think,” Ms Courselle said.
It is, she says, very stressful.
Gerry Keogh
The histories of America and France have been intertwined for centuries through revolutions against tyranny and two wars fighting for liberty.
America used to call France its oldest ally, but under Donald Trump its now seen here as turning on France and the rest of Europe in a reckless and unjustified trade war.
It is all doing enormous harm to relations between the US and its European allies.
How Europe now decides to retaliate will help determine the extent of that damage.
It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.
In the time that it took me to fly from London to Saudi Arabia, where President Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.
• On the Gaza war: The Trump administration has confirmed it’s holding talks with Hamas, which says it will release a hostage amid renewed hopes of a ceasefire.
• On the Ukraine war: President Volodymyr Zelenskyy has said he is prepared to meet Russian President Vladimir Putin in Istanbul – this announcement came minutes after Trump urged Zelenskyy to agree to the meeting.
• On the China-US trade war: The White House says the two countries have agreed to a “trade deal”. China said the talks, in Geneva, were “candid, in-depth and constructive”.
All three of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.
This sets the ground for what could be a truly consequential week for Trump’s presidency and his ability to effect change.
With his unique style, Trump is seeking to align numerous stars as he embarks on his first foreign diplomatic trip of his second presidency.
For days, it’s been unclear how the week ahead would unfold and which global challenge would be dominant.
The Saudi government has been instrumental as a broker in the Ukraine-Russia conflict and Qatar has been a mediator in the Gaza war.
Trump will visit both countries this week.
President Donald Trump on Air Force One earlier this month. File pic: AP
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Putin under pressure?
On Ukraine, Putin held a late-night news conference at the Kremlin on Saturday at which he made the surprise proposal of talks with Zelenskyy in Istanbul this Thursday.
But he rejected European and US calls for an immediate ceasefire.
The move was widely interpreted as a delay tactic.
Trump then issued a social media post urging Zelenskyy to accept the Russian proposal; effectively to call Putin’s bluff.
The American president wrote: “President Putin of Russia doesn’t want to have a Cease Fire Agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the BLOODBATH. Ukraine should agree to this, IMMEDIATELY. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the U.S., will know where everything stands, and can proceed accordingly! I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America. HAVE THE MEETING, NOW!!!”
Within minutes, Zelenskyy responded, agreeing to the talks.
“We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy. There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses,” Zelenskyy wrote on X.
The prospect of Putin and Zelenskyy together in Istanbul on Thursday is remarkable.
It raises the possibility that Trump would want to be there too.
President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. Pic: Presidential Office of Ukraine/dpa/AP Images
Israel’s war in Gaza
On Gaza, it’s been announced that US envoy Steve Witkoff will arrive in Israel on Monday to finalise details for the release of Idan Alexander, an Israeli-American hostage being held by Hamas.
The development comes after it was confirmed that Mr Witkoff has been holding discussions with Israel, Qatar and Egypt and, through them, with Hamas.
The talks focused on a possible Gaza hostage deal and larger peace discussions for a ceasefire.
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Gaza after around a year and a half of Israeli attacks. Pic: Reuters/Mahmoud Issa
Just days ago, Israel announced a new military plan to move back into Gaza.
When do candid talks become a trade deal?
Meanwhile, officials from the United States and China have been holding talks in Geneva, Switzerland, to resolve their trade war, which was instigated by Trump’s tariffs against China.
Late on Sunday evening, the White House released a statement claiming that a trade deal had been struck.
In a written statement, titled “U.S. Announces China Trade Deal in Geneva”, treasury secretary Scott Bessent said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks… We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”
Beijing Global Times newspaper quoted the Chinese vice premier as saying that the talks were candid, in-depth and constructive.
However, the Chinese fell short of calling it a trade deal.
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A Qatari gift
In a separate development, US media reports say that Qatar is preparing to gift Trump a Boeing 747 from its royal fleet, which he would use as a replacement for the existing and aging Air Force One plane.
The Qatari government says no deal has been finalised, but the development is already causing controversy because of the optics of accepting gifts of this value.
Of all the fronts in Donald Trump’s trade war, none was as dramatic and economically threatening as the sky-high tariffs he imposed on China.
There are a couple of reasons: first, because China is and was the single biggest importer of goods into the US and, second, because of the sheer height of the tariffs imposed by the White House in recent months.
In short, tariffs of over 100% were tantamount to a total embargo on goods coming from the United States’ main trading partner. That would have had enormous economic implications, not just for the US but every other country around the world (these are the world’s biggest and second-biggest economies, after all).
Trump latest: US and China slash tariffs in trade war de-escalation
So the truce announced on Monday by treasury secretary Scott Bessent is undoubtedly a very big deal indeed.
In short, China will still face an extra 30% tariffs (the 20% levies cast as punishment for China’s involvement in fentanyl imports and the 10% “floor” set on “Liberation Day”) on top of the residual 10% average from the Biden era.
But the rest of the extra tariffs will be paused for 90 days. China, in turn, has suspended its own retaliatory tariffs on the US.
The market has responded as you would probably have expected, with share prices leaping in relief. But that raises a question: is the trade war now over? Now that the two sides have blinked, can globalisation continue more or less as it had before?
That, it turns out, is a trickier and more complex question than it might first seem.
Pic: AP
For one thing, even if one were to assume this is a permanent truce rather than a suspended one, it still leaves tariffs considerably higher than they were only last year. And China faces tariffs far higher than most other countries (tot up the existing ones and the Trump era ones and China faces average tariffs of around 40%, while the average for most countries is between 8% and 14%, according to Capital Economics).
In other words, the US is still implementing an economic policy designed to increase the cost of doing business with China, even if it no longer attempts to prevent it altogether. The fact that last week’s trade agreement with the UK contains clauses seemingly designed to encourage it to raise trade barriers against China for reasons of “security” only reinforces this suspicion. The trade war is still simmering, even if it’s no longer as hot as it was a few days ago.
Read more:
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And more broadly, the deeper impact of the trade rollercoaster in recent months is unlikely to disappear altogether. Companies remain more nervous about investing in factories and expansions in the face of such deep economic instability. No-one is entirely sure the White House won’t just U-turn once again.
That being said, it’s hard not to escape the conclusion that the US president has blinked in this trade war. In the face of a potential recession, he has pulled back from the scariest and most damaging of his tariffs, earlier and to a greater extent than many had expected.
World
Zelenskyy’s offer to meet Putin raises the stakes in this already high-stakes game of diplomacy
Diplomacy over Ukraine has become even more of a game of high-stakes poker.
In the early hours of Sunday, Vladimir Putin played his hand, rejecting demands for a ceasefire and proposing direct talks in Istanbul instead.
Read more:
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That was in response to the opening gambit made on Saturday by Ukraine and its European allies.
Sir Keir Starmer, Volodymyr Zelenskyy and Emmanuel Macron among world leaders in Kyiv. Pic: AP
Britain’s Sir Keir Starmer said they were “calling Putin out”, that if he was really serious about peace, he should agree to a 30-day unconditional ceasefire starting on Monday.
And they thought they had Donald Trump’s backing until he made his move.
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Kremlin: ‘We don’t share Starmer’s view’
Late Sunday, he drove a cart and horses through claims of western unity, coming down on Putin’s side.
Ukraine, he said, should submit to the Russian leader’s suggestion of talks.
“Ukraine should agree to this – immediately”, he posted. Then: “I’m starting to doubt that Ukraine will make a deal with Putin…”
So much for the Coalition of the Willing having Putin where they wanted him.
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Are Putin’s call for peace talks genuine?
Trump let him off the hook.
All eyes were then on President Zelenskyy, who has now in turn dramatically raised the stakes.
He will go to Istanbul, he said, and wait there for Vladimir Putin.
Over to you, Vladimir.
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The fast-paced diplomacy aside, the last twenty-four hours have brought Europe closer to a moment of truth.
They thought they had Donald Trump’s support, and yet even with 30 nations demanding an unconditional ceasefire, the US president seemed, in the end, to side with the Russian leader.
He has helped Putin get out of a hole.
Yet again, Trump could not be counted on to pressure Vladimir Putin to end this war.
If America is no longer a reliable partner over Ukraine, Europe may need to go it alone, whatever the cost.
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