European wine and spirits producers today begin operating under a new 15% US import tariff, following confirmation earlier this week of a transatlantic trade framework agreed between President Donald Trump and European Commission President Ursula von der Leyen.
The measure, which came into force this morning, replaces the previous 10% tariff and dashes hopes of an immediate sector-specific exemption.
The tariff applies to a broad range of EU goods, including wine, spirits, and liqueurs, and will remain in place pending further negotiations expected in the autumn. Talks between Brussels and Washington over the summer failed to yield carve-outs for alcohol products, despite sustained lobbying from European industry representatives.
The 15% rate represents a compromise on an earlier US proposal for a 30% punitive tariff, floated in early July. While this higher figure was ultimately avoided, the implemented rate nonetheless delivers a sharp setback to one of the EU’s most valuable export categories. According to Eurostat data, the EU exported approximately €9 billion worth of alcoholic beverages to the United States in 2024, with wine accounting for €5 billion of that total. France, Italy, and Spain — the bloc’s top producers — are expected to absorb the largest share of the impact.
Speaking on Thursday, Commission spokesperson for trade Olof Gill confirmed that “wine and spirits will be captured by the 15% ceiling” under the new framework. He added that the Commission remains committed to securing the “maximum number of carve-outs” during the next phase of negotiations.
Broader Trade Deal and Sector Fallout
The tariff is part of a wider political and economic agreement struck on Sunday, under which the EU committed to significant US‑focused purchases and investments. These include an estimated $750 billion (€638 billion) in American energy imports, $600 billion (€510 billion) in cross-border investments, and undisclosed volumes of US military equipment procurement. In return, the EU secured exemptions for certain high-priority sectors, including aerospace components, generic pharmaceuticals, semiconductor manufacturing tools, and raw materials.
Notably absent from this list were wine and spirits, a point that has drawn criticism from affected industries. “This will have immediate and damaging consequences,” said Ignacio Sanchez Recarte, Secretary General of the Comité Européen des Entreprises Vins (CEEV). “Export volumes will decline, and investment decisions are already being paused across the sector.”
Compounding the issue, European producers of beer and ready-to-drink beverages continue to face a separate 50% tariff on aluminium packaging, adding cost pressures throughout the supply chain. Analysts warn that these combined effects could further erode price competitiveness in the US market, particularly as the euro has appreciated against the dollar in recent weeks.
Reaction in the United States
US stakeholders also expressed frustration. Chris Swonger, President and CEO of the Distilled Spirits Council of the United States (DISCUS), described the failure to secure a tariff exemption for spirits as “extremely disappointing and utterly exasperating.”
He called on the Trump administration to restore zero-for-zero terms for spirits as quickly as possible, citing the importance of the transatlantic market for American distillers, agricultural suppliers, and hospitality businesses.
Zero tariffs on spirits had been in place since 1997, but were disrupted in 2018 when the EU imposed retaliatory duties on US bourbon in response to Trump-era metal tariffs. Although those duties were suspended in 2021, this week’s developments leave no clear path to their full removal.
Looking Ahead
Industry participants across Europe are now recalibrating. With the fourth quarter — traditionally the busiest sales period for wine and spirits — approaching, exporters are reviewing pricing strategies, shipment schedules, and inventory planning. Some are also exploring alternative markets to offset projected losses in the United States.
French Trade Minister Laurent Saint Martin confirmed that Paris remains in dialogue with Brussels and Washington, and expressed hope that a revised agreement could be achieved later this year. However, a senior EU diplomat indicated that no substantial progress on wine and spirits is expected before the autumn.
Economists note that while the EU has succeeded in averting a broader trade conflict, the concessions made — particularly on high-value sectoral exports — reflect a difficult balancing act. “Washington has gained tariff leverage, investment pledges, and defence procurement commitments,” said one Brussels-based trade analyst. “Brussels has bought time, but at a cost.”
For now, the tariff remains in force. Whether diplomacy can unwind it in time for the peak export season remains uncertain.
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