Business
Fear of Trump’s Tariffs Ripples Through France’s Champagne Region
French Champagne producers do nearly a billion dollars’ worth of business with the United States every year. But on Friday in Épernay, the world capital of sparkling wine, the only number on anybody’s lips was 200.
That was the percent tariff that President Trump has threatened to impose on Champagne and other European wines and spirits exported to the United States, in a trade war that exploded this past week after the European Union countered Mr. Trump’s penalties on steel and aluminum with its own duties on American products.
The triple-digit menace landed like a thunderbolt in Épernay, rattling workers in nearby fields, producers in small villages and the venerable houses that line the Avenue de Champagne, Épernay’s central boulevard and a UNESCO Heritage site that oozes tasteful wealth.
“A 200 percent tariff is designed to make sure that no Champagne will be shipped to the United States,” said Calvin Boucher, a manager at Michel Gonet, a 225-year-old Champagne house on the avenue. With 20 to 30 percent of the 200,000 bottles it makes yearly exported to American wine merchants and restaurants, “that business would be crushed,” he said, adding that the price of a $125 Champagne would more than triple overnight.
Épernay sits in the heart of a region that produces the world’s finest bubbly. The United States is its biggest foreign market, with 27 million bottles shipped there in 2023, valued at around 810 million euros ($885 million).
Chardonnay, Pinot Noir and Meunier grapes blanket the rolling hills and deep valleys of Champagne, which covers more than 130 square miles, from the city of Reims to the Aube river. The area is under France’s strict Appellation d’Origine system, which ensures that only the sparkling wine made here, using specific methods, can legally be called Champagne.
With more than 4,000 independent winemakers and 360 Champagne houses, the region produces around 300 million bottles annually, with one billion more resting in cellars. The biggest houses — including Dom Pérignon, Veuve Clicquot and Moët & Chandon, owned by the luxury conglomerate LVMH Moët Hennessy Louis Vuitton — dominate production and exports and account for a third of total sales.
But such figures were of little comfort in the wake of Mr. Trump’s threat. Just off the Avenue de Champagne, Nathalie Doucet, the president of Besserat de Bellefon, a specialty Champagne house that exports 10 percent of its premium production to the United States, said that the trade war made her anxious.
“We are waiting to see what happens, but it’s not good news,” said Ms. Doucet, whose Champagne is made with a laborious low-pressure process that gives it a crisp acidity and fine effervescence.
Champagne already had a tough year with bad weather that had reduced the harvest. Consumption has declined as young people shifted habits and switched to cocktails and artisanal beer. Champagne sales have thinned since the pandemic, falling 9 percent last year.
At the same time, she said, Europe was grappling with wars in Ukraine and Gaza. And now the trade war with the United States, one of France’s traditional allies, over issues that have nothing to do with Champagne, has made her feel like collateral damage.
“It seems like a deliberate punishment,” said Cyril Depart, the owner of the Salvatori wine shop, just off the avenue, which offers a wide variety of artisanal Champagnes. His wife was an export manager for one of the big Champagne houses and had already been crunching numbers on the potential impact.
Leah Razzouki, an Épernay resident whose family has worked in the Champagne business for generations, said she was infuriated. “Many of our friends are small producers and they would be hit very hard,” she said.
The damage of a trade war would spread far beyond Champagne’s regal houses, hitting American importers and distributors and putting numerous small businesses at risk.
Michael Reiss, the president of Vineyard Road, a small distributor in Framingham, Mass., that imports Champagne and wines from Europe and distributes them in New England, said that small businesses like his, including restaurants and retail shops, would be “very hurt.” The unpredictable trade environment could force businesses to cancel planned investments, he added.
Adding to the pain, tariffs applied at the beginning of the supply chain can multiply, as each business handling the product marks it up accordingly, Mr. Reiss said. “So even a 25 percent tariff can easily lead to a 40 to 60 percent increase in prices,” he said.
A 200 percent tariff “would eliminate the possibility of people buying things that bring them joy in their lives,” he added.
Even inside the Champagne Museum bordering the avenue in Épernay, the chatter strayed to Mr. Trump’s tariffs. Sacha Raynaud, whose family owns a small Champagne house, had brought a friend to learn the history of Champagne, which first appeared in the 17th century on the tables of royalty, giving the drink its nickname, “the king of wines.”
“French people are waking up to what’s happening in the United States, and starting to speak about boycotting American products,” she said.
Similar worries circulated in the fields. Working in a buttery morning light, a dozen field hands secured knotted brown vines to wires ahead of the spring growing season on freshly plowed earth in the shadow of the Champagne-producing town of Reuil, just west of Épernay.
Even these jobs were at risk, said Patrick Andrade, who runs a small company that helps maintain Champagne vineyards. The 12 hectare (30 acre) plot belonged to a small house that exports to the United States, he said.
Should sales fall, wine producers would need fewer field hands, and there would be less work for tractor operators, cork makers and bottle makers. In the worst case, he added, it could force Champagne producers to consider ripping out vines.
On Friday, France’s finance minister, Eric Lombard, called the trade war “idiotic” and said he would travel to Washington soon. “We need to talk to the Americans to bring the tension back down,” he told French television.
France’s biggest Champagne houses have stayed conspicuously silent, declining to say anything while waiting to see how Mr. Trump’s threat would play out — and whether European officials could get him to back off.
Among them was LVMH Moët Hennessy Louis Vuitton, which sells nearly 35 percent of its wines and spirits in the United States. The company did not respond to a request for comment.
Outside of LVMH’s Moët & Chandon mansion on the Avenue de Champagne, a group of Americans snapped selfies in front of a statue of Dom Pérignon, the monk who invented Champagne. Inside the stately building, no staff members wanted to talk tariffs.
Even so, locals whispered rumors that the big houses were upset by the tariff threat, but expected that it could quite possibly blow over.
After all, some said, Bernard Arnault, France’s richest man and the head of the LVMH empire, which dominates much of Champagne’s production, has a longstanding relationship with the U.S. president and was invited by Mr. Trump to his inauguration. Perhaps Mr. Arnault’s friendship would prevail at the end of the day, they said.
But for now, that is all just speculation. The reality is that nothing is certain — and uncertainty is bad for business.
Back at the Michel Gonet Champagne house, Mr. Boucher pointed to a display of cuvées that were popular among customers in the United States.
“It’s just a stressful situation because we don’t know if the tariffs will even happen,” he said. “It’s not good for anybody.”
Aurelien Breeden and Ségolène Le Stradic contributed reporting.
Business
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Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
Business
California’s gas prices push Uber and Lyft drivers off the road
The highest gas prices in the country are making it tougher for some gig drivers to make a living.
Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.
While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.
John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.
“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.
Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.
Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.
The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.
On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.
Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.
That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.
“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.
Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.
(Jess Lynn Goss / For The Times)
Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.
Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.
“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.
Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”
The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.
Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.
“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”
Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig workers have struggled with rising gas prices in the past.
In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.
Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.
Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.
“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.
Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.
He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.
Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”
John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.
(Jess Lynn Goss / For The Times)
Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.
“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”
In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.
“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”
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