EU Fights for Preferential Tariff on Wine & Spirits in U.S.

The EU is lobbying for preferential tariffs on wine and spirits exports to the U.S., as the current deal imposes a 15% rate. With famous brands affected and calls for zero tariffs, both U.S. and EU industry groups advocate for negotiations to avoid price hikes and secure market certainty.

The European Commission is actively advocating for preferential tariff rates on wine and spirits exports to the United States. This move aims to exempt such exports from the standard 15% tariff currently applied under the EU-U.S. trade agreement. Maros Sefcovic, the EU's trade commissioner, emphasized the strong commitment to achieving this goal, though it has yet to be realized.

The trade agreement between the EU and the U.S., finalized last month, includes a broad 15% tariff on most imports from the European bloc, impacting industries from automobiles to pharmaceuticals. The alcohol industry, representing major exports like French Champagne and Irish whiskey valued at approximately $10 billion annually, is fighting for reduced tariffs to prevent significant price increases.

Industry groups such as the Distilled Spirits Council of the United States and spiritsEUROPE are urging both parties to return to negotiations. They are advocating for a "zero-for-zero" tariff scheme to ensure stability and growth opportunities in transatlantic trade. Recent measures have included the EU's temporary suspension of retaliatory tariffs on U.S. imports.