French cognac maker Remy Cointreau said it was reducing its forecast for the impact of US tariffs after the European Union and the United States reached a trade deal in July.

The US had initially threatened to impose a 30% tariff on European goods, but last month the two countries announced a deal that would halve the rate to 15%.

The company, known for its luxury brands Louis XIII and Rémy Martin, had initially expected a loss of 35 million euros (about $41 million) from the higher tariffs, but now expects a net impact of around 20 million euros on its current operating profit for the 2025-2026 financial year.

The US market is key for Remy Cointreau, which already raised its forecasts for the year in July after the EU reached another major agreement — this time with China on cognac imports.

Although the company expects losses of around 10 million euros due to Chinese tariffs, it confirmed its goal of single-digit annual sales growth, supported by a “technical” recovery in the US market. | BGNES