The European Union and the United States must decline their trade disputes and wines and alcoholic beverages should remain untouched on both sides, said Florar Morijon, the President of the National Intercontinental Bureau of Koniak (Bnic).

“We will lose a clear market share,” he told Reuters in an interview. “For our region and our whole economy, it’s a cold shower.”

US President Donald Trump imposed sweepstakes on imports on Wednesday, including 20% ​​on products from the European Union.

The Cognac Industry has also faced separate pressure from China, which recently imported duties to the loads of alcoholic beverages in October amid a dispute with the European Union for electric vehicles. The United States and China are the important markets for the exports of the brandy industry.

Last month, Trump threatened to impose 200% duties on imports of wine, brandy and other alcoholic beverages from Europe in response to the European Union’s plan to impose duties on American whiskey and other products. The EU plan was in itself a reaction to the 25% sanctions imposed by Trump on steel and aluminum imports.

Asked about the risk of additional US duties in Cognac, Origion said the group had the impression that discussions are on the right track to avoid this scenario, but that it must remain prudent.