US Tariff of 15 Percent on Wine Takes Effect

Wines and spirits from the EU will be subject to a US import tariff of 15 percent starting August 7. This will remain in effect until a new agreement is reached, said Olof Gill, spokesperson for the EU Commission for Agriculture and Trade. Thus, the hopes of the industry for immediate relief have been dashed, reports the news agency Reuters.

“The Commission remains determined to achieve as many exceptions as possible,” Olof Gill continued. “However, we do not expect that wine and spirits will be part of the first group of US exceptions. Accordingly, the industry will be subject to the 15 percent tariff.”

The framework trade agreement reached last Sunday between Brussels and Washington provides for a general tariff rate of 15 percent for most EU goods. However, some products, such as wine and spirits, may possibly be exempted. A senior EU diplomat said that discussions about wine and spirits tariffs would continue in the fall.

Since April 2025, the US tariff rate for European wines and spirits is 10 percent. The EU Commission aims to reduce this to zero or – in the case of wine – to the so-called “most-favored-nation tariff rates” (MFN). These are based on a fixed amount per liter and not on a percentage. The US MFN tariff rates for wine currently stand at 19.8 cents per liter for sparkling wines and 6.3 cents per liter for most still wines – thus at a relatively low level.

The European wine industry warns, however: Even a temporary increase in tariffs could cause significant damage – especially in combination with the strong euro. “A 15 percent tariff on EU wines, even if it only lasts a few months, would cause substantial economic losses – not only for EU winemakers but also for US companies along the supply chain,” emphasized Ignacio Sánchez Recarte, Secretary General of the European Winemakers’ Association CEEV. “In conjunction with the unfavorable exchange rate, the overall burden on the industry could rise to as much as 30 percent. Investments will be halted, exports will collapse – in anticipation of a final agreement.”

The US government has postponed the publication of the decree that will implement the trade framework agreement from August 1 to August 7. An official said the administration needs more time to draft the regulations that will apply to individual states as well as the EU.

(ru)