Alcohol industry urges EU-US tariff exemption as €29.8B export market set for severe blow

The US has officially imposed its 15% tariff on alcohol imports from the EU, hitting the bloc’s €29.8 billion (US$24.7 billion) export industry — 30% of which goes to the US. Despite relief that a wider trade war was avoided, industry groups on both sides of the Atlantic are urging the complete removal of alcohol tariffs, warning of severe economic fallout.

Some sectors have been granted strategic exemptions from the new tariffs, including defense, aerospace, and certain medical industries. The alcohol industry was a prominent bargaining chip during the negotiations, with US President Trump at one point threatening a 200% tariff on wines and spirits if the EU’s whisky tariffs were raised.

Now, a group of over 57 industry associations called the “Toast not Tariffs Coalition” with 19,000 members is petitioning the US government to axe all tariff rates between the US and EU entirely. European spirits and wine bodies are also appealing for renegotiation in Brussels. 

Ignacio Sanchez Recarte, secretary general of European Committee of Wine Companies (CEEV), tells Food Ingredients First: “If the 15% tariff remains unchanged, EU wines will lose competitiveness and reduce their turnover in the US. This will result in long-lasting losses in market share, reduction of investments, and damage to the established trade relationships. For EU wine companies, it will be critical damage in a very delicate moment.”

The EU alcohol industry exports €29.8 billion annually and 30% goes to the US.

Market plunge in the US

The US-EU spirits sectors previously had reciprocal zero-for-zero tariffs, which boosted the transatlantic spirits trade by 450% between 1997 and 2018, until the EU imposed a 25% retaliatory tariff on American whiskey in 2018 in a dispute over steel and aluminum tariffs. 

American whiskey exports to the EU (its largest export market) plunged 20% as a result, from US$552 million to US$440 million (2018-2021).

During the last three years that the tariffs were suspended, US whiskey exports to the EU surged by almost 60%, climbing from US$439 million in 2021 to US$699 million in 2024.

“Thousands of consumers and workers throughout the wine and spirits supply chain, from barrel makers to bartenders, are sending a clear message to the administration that we want toasts, not tariffs,” the Toasts Not Tariffs Coalition says. 

“We need the president’s leadership to secure trade agreements that protect fair and reciprocal zero-for-zero tariffs with the EU and our other key trading partners. This will bolster our great hospitality industry and result in increased exports of US wine and spirits products, and investments and job growth in communities across our country.”

Hervé Dumesn, director general of Spirits Europe trade body, says: “This situation remains unbalanced and unsustainable. We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits.”

Wine should be prioritized for economic, social, and trade reasons, says Ignacio Sanchez Recarte, secretary general of CEEV.

Wine sector unemployment

The CEEV’s Sanchez Recarte also says that the EU should consider that the industry generates three million jobs and plays a vital role in ensuring the socioeconomic sustainability of rural regions, many of which have few, if any, alternative economic opportunities. 

“There are several reasons why wine should be prioritized — economic, social, and trade-related. In the EU, the wine sector generates three million jobs and plays a vital role in ensuring the socioeconomic sustainability of rural regions, many of which have few, if any, alternative economic opportunities.” 

“EU wine exports generate nearly US$22 billion in economic revenue for the US, supporting a wide network of jobs and businesses across distribution, retail, and hospitality. Importantly, wine is not just a food commodity — it is a product of origin, deeply tied to its terroir and cannot be substituted in its essence. Both the EU and US wine sectors are united in their call: to prevent the imposition of tariffs on wine.”

He adds that a 15% tariff on EU wines, even if temporary, will result in substantial economic damage — not only for European wine producers but also for American importers, distributors, and retailers throughout the supply chain. “The total financial impact on the sector could reach 30%, with immediate consequences including suspended investments and declining export volumes,” he concludes.