European wine and spirit makers are uneasy about being left out of the new U.S.–EU trade deal and are pushing for their own exemption. It still allows for a separate deal on alcohol tariffs, but leaders warn that any delay could cut sales and squeeze profits.
European Commission President Ursula von der Leyen said on Sunday that the new framework, which would impose 15% duties on some imports to the United States, does not yet cover wine and spirits. She added that discussions to secure terms for that sector are due to continue in the coming weeks, as reported by CNBC.
The promise of a tariff reprieve comes at a crucial time for spirit makers, which have faced weak consumer spending and changing drinking habits.
EU alcohol makers look for relief
Early on Monday, shares of Pernod Ricard, Remy Cointreau, Diageo and Davide Campari went up on hopes of an exemption, only to retrace those gains as the outlook remains unclear.
By contrast, brewers slipped, even after Heineken announced stronger‑than‑forecast results for the first half of the year, warning of softer demand in both the U.S. and Europe.
CEEV, representing Europe’s vintners, has called for wine to be placed on the planned tariff‑free list.
Marzia Varvaglione, president of CEEV, said on Sunday, “[We] are watching with great anticipation the outcome of the upcoming negotiations regarding the list of products that will be included under the 0‑for‑0 tariff arrangement, among them some agricultural products.”
She added, “We truly believe the trade of wine is of great benefit for both EU and U.S. companies.”
The pact establishes no duties on specific high‑priority items, including aircraft and related components, certain chemicals, generic medicines and semiconductor equipment, while applying a 15% rate to other goods within its scope.
Officials say discussions continue over which additional products might be exempt, with certain agricultural and industrial goods still under consideration.
U.S. distillers also hope for exemptions
Chris Swonger, head of the U.S. Distilled Spirits Council, expressed confidence that an expanded exemption will be finalized shortly. “We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero‑for‑zero tariffs for U.S. and EU spirits products,” he said in a statement.
According to Eurostat, alcohol shipments to America reached roughly €9 billion (about $10.5 billion) in 2024, while U.S. exporters dispatched approximately $1.2 billion in spirits to European markets, the Distilled Spirits Council reports.
Many European distillers have endured several quarters of subdued demand amid trade tensions and a post‑pandemic slowdown. Morningstar’s Verushka Shetty has cautioned that uncertainty over duties could weigh on margins, even as firms plan to offset increases through price adjustments.
CEEV has also warned that new tariffs could force wineries to raise prices or exit the U.S. market entirely, recalling that a previous 10% levy imposed during President Donald Trump’s administration coincided with around a 12% drop in turnover for EU wine producers.
“While producers may absorb part of the increase to lessen the impact on consumers, this approach is not always feasible or effective,” CEEV Secretary General Dr Ignacio Sanchez Recarte said by email.
