Paris. French cognac producers plan to pay to uproot their vines to reduce production and cope with falling demand for the high-end drink due to tariffs.

Cognac has been one of the main victims of recent trade tensions between the European Union, the United States and China, which have threatened to raise tariffs.

An investigation antidumping It has also affected cognac sales in China.

The main French association of cognac winegrowers, UGVC, will pay its members 6,000 euros ($7,145) per hectare of vineyard destroyed, in addition to the 4,000 euros already offered by the French Ministry of Agriculture, the head of the UGVC declared on Tuesday.

“We have to readjust the volume of production to demand,” UGVC director Anthony Brun told Reuters.

The UGVC estimates that the total volume of cognac sold has fallen by more than a third in the last three years, reaching around 140 million bottles in 2025.

Brun said he will borrow money over a 10-year period to fund the donations. He did not want to specify how many hectares will be destroyed.

Recent trade deals between the EU and Mercosur, as well as between the EU and India, may open new markets for cognac, but it will take years to create lasting demand, Brun said, adding that India appears to offer significant ‌potential for the industry.