Remy Cointreau Mitigates Impact of US Tariffs

French cognac maker Remy Cointreau lowered the expected hit from US tariffs on Friday after the European Union and the United States reached a trade deal in July. The United States had threatened to impose a 30-percent tariff on good from the European Union, but the two sides announced an agreement last month that set the duty at 15 percent instead.

Remy Cointreau, which had foreseen a 35-million-euro ($41 million) hit from the inital tariff threat, said it now expects a net overall impact of 20 million euros on its current operating profit for the 2025-2026 fiscal year. The US market is important for the French company, whose cognac brands include Louis XIII and Remy Martin.

The group had already lifted its outlook for the year in July after the EU reached a deal with another major market, China, on cognac imports. It still expects a 10-million-euro hit from Chinese tariffs, but Remy Cointreau reaffirmed its objective of single-digit growth in annual sales, driven by a "technical" rebound in the United States.