The saga of U.S. tariffs on European Union products, including wine, continues to play out like an economic and legal thriller, filled with sudden twists and political drama.
Currently, a 15% tariff applies to all EU imports, a measure that has unsettled not only European producers but also the U.S. wine trade, which relies heavily on imports from France, Italy, Spain, and other EU countries.
Court Challenges the Legitimacy of Tariffs
Just days after the new tariff regime came into force this summer, the U.S. Court of Appeals for the Federal Circuit delivered a blow to the White House. The Court reaffirmed a May ruling that the tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were illegitimate—not because tariffs themselves are forbidden, but because the procedure used to implement them exceeded presidential authority.
The Court noted that tariff power belongs to Congress, not the President. Vos Selections, a New York-based importer and long-time advocate for free trade in wine, was among the companies spearheading the legal challenge, alongside businesses from 12 states.
Still, the decision is not yet final. The Court stayed its ruling until mid-October, keeping tariffs in place while the administration prepares an appeal to the Supreme Court. If the Court agrees to hear the case, oral arguments could take place in early 2026, with a final decision expected by late spring or summer of that year.
White House Holds Other Tariff Tools
Even if the Supreme Court ultimately strikes down the use of IEEPA for such broad tariffs, the threat is far from over. The White House has other legal instruments at its disposal:
- Section 232 (national security grounds)
- Section 301 (unfair trade practices)
- Section 122 of the Trade Act of 1974 (temporary import surcharges)
This means that even if one avenue is blocked, the administration could swiftly reimpose tariffs through another.
The Stakes for the U.S. Wine Industry
According to the U.S. Wine Trade Alliance (USWTA), imported EU wine generates nearly USD 23.96 billion in revenue annually within the United States. Only USD 5.3 billion flows back to Europe, leaving nearly USD 19 billion circulating in the American economy. This surplus supports hundreds of thousands of jobs across importers, distributors, retailers, and restaurants in all 50 states.
In short, tariffs don’t just affect European wineries—they threaten a vast U.S.-based economic ecosystem.
Trump’s Hardline Stance
Despite the legal setbacks, the President Trump remains steadfast. On his social media platform, Truth Social, his message is clear: tariffs are central to his economic policy and a symbol of strength. He claimed, “Without the tariffs, and without the trillions of dollars we have already collected, our country would be completely destroyed and our military might would be instantly annihilated.”
His rhetoric leaves little doubt that, regardless of legal battles, tariffs will remain a cornerstone of his trade agenda.
Outlook: A Fight Far from Over
For now, EU wines entering the U.S. continue to face the 15% tariff, while legal proceedings unfold and the administration readies new justifications to maintain them. Importers, restaurateurs, and consumers remain caught in the middle of a battle that is as much about politics as it is about economics.
The months ahead will be crucial: by mid-October, the Supreme Court may decide whether to take up the case, potentially setting the stage for a ruling that could reshape transatlantic wine trade—or simply prolong the uncertainty.
Source: WineNews