European wine and spirits not exempt from 15% US tariff
The Commission's trade spokesperson, Olof Gill, confirmed on Thursday that alcoholic beverages are not expected to be excluded from the sweeping measures, which cover nearly all EU imports. "That sector, as with all other economic sectors, will be captured by the 15% ceiling," Gill said, adding that despite the introduction of tariffs, negotiations for more carve-outs will continue.
"The Commission remains determined to achieve and secure the maximum number of carve-outs, including for traditional EU products such as wine and spirits," he added.
Traditionally, spirits have been traded under a zero-tariff regime since the US and the EU reached an agreement in 1997. While they currently face a 10% US tariff, this will rise to 15% from tomorrow.
As for wine – a struggling sector due to a slump in global consumption – the impact of trade tensions since Donald Trump took office is already being felt on both sides of the Atlantic.
"In May alone, the sharp decline in EU wine imports drained $479 million from US businesses across the distribution, retail, and hospitality sectors," said Ben Aneff, president of the US Wine Trade Alliance (USWTA).
Aneff said US wine exports are down 41% compared to last year. "[This is] an alarming signal of disruption on both sides of the trade equation," he added.
Alcoholic beverages are a key EU export to the US, totalling €9 billion, according to Eurostat.
In France – the EU's largest exporter of alcoholic drinks – the government had expected spirits to be exempted from the 15% tariff, but not wine. Trade Minister Laurent Saint-Martin said on Monday that Paris would continue pushing to exempt those sectors because "the last word hasn't been said."
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