The newly struck European Union-United States trade deal does not include an exemption for the wine and spirits sector.
Speaking after the EU and US made public the detail of commitments made in a deal agreed last month, EU trade commissioner Maros Sefcovic confirmed a cap to US tariffs on the vast majority of EU exports at 15%.
However, as expected, there is to be no exemption for wine and spirits products.
The door to further tariff reductions for these sectors remained open in the future, however, Sefcovic said.
“This one we didn’t get in. But I can tell you that there is clear commitment from the European Commission to put it on the table,” Sefcovic said, when asked about wine and spirits’ inclusion in the deal.
Wine and spirits industry representatives on both sides of the Atlantic had been pushing hard for their wares to be excluded from trade levies, arguing that the likes of cognac and champagne could not be produced in the US, and that the tariffs will put growth and jobs at risk.
Trade body the Distilled Spirits Council of the United States (DISCUS) expressed its disappointment in a statement.
“Without a permanent return to zero-for-zero tariffs on spirits, American distillers do not have the certainty to plan for future export and job growth without the fear of retaliatory tariffs returning,” DISCUS CEO Chris Swonger said.
The EU agreed to a six-month pause to any retaliatory tariffs on US imports including wine and spirits earlier this month. This will remain in place until 5 February 2026, at which stage the bloc could introduce tariffs of its own on the likes of US wine and bourbon.
Tariffs on EU spirits would “further compound the challenges facing restaurants and bars nationwide”, Swonger added.
In the EU, meanwhile, trade body SpiritsEurope lamented what it described as a “missed opportunity” to restore zero-for-zero tariffs.
“This was a critical moment to reaffirm and reinvigorate our shared commitment to fair and reciprocal trade and give the transatlantic spirits sector the boost it needs to get back on a stronger growth path,” said Hervé Dumesny, director general of spiritsEurope. “While we appreciate the progress made in de-escalating broader trade tensions, every month of delay in restoring the zero-for-zero tariff agreement for spirits holds back growth, investment and consumer choice on both sides of the Atlantic.”
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