On Monday, July 28, 2025, the European Union wine and spirits industry received long-awaited—but deeply disappointing—news.
After intense negotiations and mounting speculation, the United States confirmed the imposition of a 15% tariff on all EU goods, including wines, spirits, and liqueurs. The decision follows an agreement reached on Sunday between European Commission President Ursula von der Leyen and U.S. President Donald Trump.
This 15% tariff replaces the initially proposed 30% punitive tariff floated earlier in July, which had caused significant concern across European industries. While the compromise avoids the harshest possible outcome, it nonetheless delivers a serious blow to Europe's wine and spirits producers, who had hoped for exemptions or a rollback to the earlier 10% rate that had been in place since April.
A Blow to the Industry’s Key Players
The tariff directly targets some of Europe’s most valuable exports. According to Eurostat, the EU exported EUR 9 billion worth of alcoholic beverages to the U.S. in 2024. Of that, wine alone represented nearly EUR 5 billion, with France, Italy, and Spain leading in volume and value. These three countries now find themselves at the epicenter of this trade turbulence.
To make matters worse, European beer and ready-to-drink (RTD) beverages face additional pressure through a 50% tariff on aluminum packaging, which remains in place. This adds cost not only at the production level but also at the consumer end, where higher prices could curb demand in the U.S. market.
Political and Economic Concessions
While the EU had to accept the 15% tariff, it secured some concessions. The agreement exempts key sectors—such as aeronautics, generic medicines, semiconductor equipment, and raw materials—from the tariff increase. But critically, wine and spirits did not receive any such exemption, much to the disappointment of industry stakeholders.
In return, the EU committed to substantial economic cooperation with the U.S., including:
- USD 750 billion (EUR 638 billion) in energy purchases from the U.S.
- USD 600 billion (EUR 510 billion) in investments
- Commitments to buy unspecified volumes of U.S. military equipment
These pledges signal a deeper alignment between Brussels and Washington but come at a cost to sectors that had expected more protective measures.
Industry Reaction and Uncertainty Ahead
The response from the beverage industry has been swift and critical. Chris Swonger, President and CEO of the Distilled Spirits Council of the United States (DISCUS), voiced cautious optimism, expressing confidence that continued negotiations could eventually lead to the restoration of zero-tariff trade in spirits.
French Trade Minister Laurent Saint Martin echoed similar hopes, stating that the door remains open for further talks, particularly as European producers feel the squeeze from rising export costs and shrinking margins.
Though the agreement prevents the worst-case scenario of 30% tariffs that were to be imposed if no deal was struck by August 1, it leaves many within the industry feeling abandoned. Economists warn that while the EU has preserved broader trade stability, the U.S. stands to gain significantly—not just from new tariff revenues, but also from the major European investment and procurement commitments.
What’s Next?
European producers now face a more challenging U.S. market, where 15% tariffs will likely translate into higher shelf prices, reduced competitiveness, and potential shifts in consumer preferences toward non-European products. With the holiday season just months away—a peak sales period for wine and spirits—many exporters are racing to reassess their pricing, logistics, and marketing strategies.
While diplomacy may yet bring relief, for now, Europe's wine and spirits exporters are bracing for impact.
Source: Vinetur