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EU-U.S. Tariff Dispute Expands to Wine and Spirits Sector

by Kaia

The ongoing trade dispute between the European Union and the United States has escalated, now affecting the wine and spirits industry, raising concerns among American alcohol importers.

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On Wednesday, the European Commission announced retaliatory tariffs on U.S. goods worth €26 billion, set to take effect in April. The decision follows Washington’s imposition of a 25% tariff on imported steel and aluminum from the EU.

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“Tariffs will be applied on products ranging from boats to bourbon to motorbikes,” the commission stated.

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In response, U.S. President Donald Trump threatened on Thursday to impose a 200% tariff on wines, champagnes, and other alcoholic beverages imported from France and EU member states.

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The move has alarmed businesses in San Francisco that specialize in European wines and spirits, with industry leaders warning that such tariffs would lead to soaring consumer prices and severely impact their operations.

The United States is a crucial market for European alcohol producers, importing €13.12 billion worth of beverages, spirits, and vinegar products from the EU in 2024, according to the International Trade Center.

Reacting to the developments, French Prime Minister François Bayrou urged European wine-producing nations to stand united against the U.S. tariff threat, as reported by Television France 1 on Thursday.

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