While Donald Trump is agitating the threat of new customs taxes to promote American wines, a legal exception by more than a century still allows Californian producers to label their “Champagne” effervescent wines. A practice that irritates the French sector. © Claudio Schwarz – UNSPLASH save saved Receive Champagne alerts while Donald Trump is threatening the threat of new customs taxes to promote American wines after having already surcharged European products to the tune of 20%, a legal exception by more than a century still allows Californian producers to label their “Champagne” wines. A practice that irritates the French sector, reports BFMTV. In France, the idea of an “American champagne” seems to be absurd. However, in the United States, bottles on the mention “California Champagne” are indeed marketed … legally. As our colleagues recall, the term “champagne” has a status of semi-generic denomination, in the same way as “Chablis”, “Burgundy” or “Madeira”. Result: some producers can still use this name, provided they have done it before 2006 and not to modify their labeling. To read also: the unusual response of this Canadian brasserie against Trump’s customs rights A trade war against the background of Trumpistte Calibre protectionism arises from an agreement signed in 2006 between the European Union and the United States, prohibiting the use of these names for new producers, while granting a “grandfather” clause to the former. Clearly, an American winemaker can no longer launch a “new champagne”, but those who already did it can continue. This tolerance is based on article 24 of the agreement on the aspects of intellectual property rights which affect trade (ADPIC) of the World Trade Organization, according to which a State is not required to protect an appellation which has become “generic” on its own territory. The subject took a political turn with Donald Trump’s recent decision to impose 20 % customs duties on European imports, wines and spirits. In March, the American president assured that these measures would be “very beneficial for wine and champagne companies in the United States”. A declaration perceived as a frontal attack on the French controlled designation of origin (AOC), protected in more than 130 countries … but not in the United States. Read also: Budget 2025: Can France take the shock of Trump taxes? A different product, which exploits the image of real Champagnejuridically, France cannot prevent the sale of “California Champagne” on American soil. But hexagon retains a major asset: nearly 27 million bottles of champagne were exported to the United States in 2024. A volume which could however fall if the trade tensions are tightened. The paradox is obvious: the Californian wines labeled “Champagne” have only little links with their French equivalents. They are often developed according to the Charmat method (in close tank), much less expensive than the traditional Champagne method. Sold between 10 and 20 dollars, these bottles target a more accessible market, more comparable to Italian prosecco than to Reims or Epernay cuvées. Read also: France drinks less: Bacardi’s plan so as not to suffer a diplomatic symbol far beyond the vinpourtant, the use of the word “champagne” allows these wines to exploit a prestigious image. “They are not really direct competitors,” puts Olivier Gergaud, professor at Kedge Business School. In the United States, the term is often perceived more technical than geographic. This semantic vagueness remains a major obstacle to free trade agreements such as TAFTA, aborted in part because of the differences on geographic indications. For the 1990s, campaigns in the United States tried to recall that “Champagne only comes from Champagne”, with relative success. But the idea of a “patriotic champagne” supported by Trump could blur this message. Fortunately, Californian producers have neither volumes nor recognition to replace French champagnes. The fact remains that in the war of the image, the advantage is never acquired – and storytelling has become a weapon as formidable as bubbles. NL Eco class, Business class >> Take advantage of the best of capital by registering for the new capital newsletter: eco class, business class receive our latest news each morning, the information to remember on the financial markets. (tagstranslate) Champagne
