On Thursday, August 21, Maroš Šefčovič, European Commissioner for Trade, confirmed at a press conference that the European Union has not yet reached an agreement with the United States to exempt European wines from customs duties.
While negotiations are still ongoing, Šefčovič emphasized that there is still a possibility of finding a compromise.
The Tariff Threat
The looming 15% tariff on European wines is a pressing concern for producing nations, particularly France and Italy, whose economies and regional identities are closely tied to wine exports. According to a joint EU–US document, this tariff would come into effect once the EU enacts legislation to reduce its own customs duties. Šefčovič noted that the legislative process is being accelerated, but time is running short.
The Stakes for France and Italy
France, the world’s largest exporter of wine by value, is particularly vulnerable. In 2024, exports of French wines and spirits to the US reached EUR 3.8 billion, making America its single most important foreign market. Laurent Saint-Martin, French Minister Delegate for Foreign Trade, stressed that wine is not only an economic pillar but also a cultural identity marker.
Jérôme Despey, head of the wine sector at the FNSEA union, warned as early as July that such tariffs could be devastating for a sector already under pressure from inflation, shifting consumer behavior, and climate-related challenges. He called on the European Commission to show firmness in the face of US trade measures.
Options for Wineries
The European wine industry now faces difficult choices. Wineries could raise sales prices to offset the tariff, but this risks losing market share in a highly competitive US market. Alternatively, producers may absorb the cost by reducing margins—an option that not all wineries, especially smaller ones, can endure. This adjustment could further exacerbate disparities between large international groups and small family-run estates.
Impact on the US Market
American importers and distributors are also caught in the crossfire. Many had lobbied for an exemption for European wines, arguing that tariffs would hurt US businesses, limit consumer choice, and push prices higher across the board. The measure could inadvertently benefit competitors from regions outside the EU, such as Chile, Argentina, and Australia.
What Comes Next
Talks between Brussels and Washington will continue in the coming weeks. The outcome is critical: with billions of euros at stake and strong transatlantic interdependence, a failure to reach an agreement could reshape trade flows, consumer behavior, and long-term strategies for both European producers and US distributors.
For now, the future of European wine in the American market hangs in the balance.
Source: Vinetur