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
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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