While the automotive industry sees a potential path to tariff relief, Europe’s famed wine and spirits producers are expressing bitter disappointment with the new US-EU trade framework. The deal, which offers a conditional reduction in US auto tariffs, provides no such exemption for alcoholic beverages, leaving them subject to a significant 15% import duty in their largest market.
The French wine exporters federation (FEVS) stated it was “hugely disappointed” by the outcome, which follows months of negotiations. In 2024, the EU exported €8 billion worth of alcohol to the US, with French wine accounting for a substantial portion. The federation’s head, Gabriel Picard, warned that the continued tariffs would create “major difficulties” for the entire sector.
France’s Minister for Trade, Laurent Saint-Martin, attempted to offer a glimmer of hope, stating on social media that “the story isn’t over” and that the government would seek “additional exemptions.” However, he conceded that this would not be easy or happen quickly. This leaves vintners, like those in Bordeaux, facing what they call a “further brake” on sales, even as they express relief that threatened 200% tariffs were avoided.
The discontent is transatlantic, as the Distilled Spirits Council of the United States also criticized the agreement. The organization projected that the 15% tariffs on EU spirits could lead to over $1 billion in retail losses and eliminate 12,000 American jobs. Its president called for “permanent tariff-free trade,” a goal this deal fails to achieve for the beverage industry.