EU-US Tariffs on Alcohol: What the New 15% Trade Deal Means for Wine and Spirits
by Parker Château-Chic | photo by Markus Winkle
In late July 2025, the United States and the European Union agreed on a trade deal setting a 15% tariff on most European imports to the US. This is a reduction from previously threatened tariffs as high as 30%. However, the deal currently excludes wine and spirits from the zero-tariff agreement, leaving many questions unanswered and industry experts cautiously optimistic.
Patric Château-Chic
photo by Renan Almeida
Why does this matter? The US and EU are each other’s biggest markets for drinks. For example, the US is the largest export destination for Champagne and Scotch whisky, while Europe is a key buyer of American whiskey. Tariffs can strongly affect prices, sales, and the outlook for producers and exporters on both sides of the Atlantic.
Trade bodies like the Distilled Spirits Council of the United States (DISCUS) and the Comité Européen des Entreprises Vins (CEEV) are actively pushing for exemptions or a return to zero tariffs on wine and spirits. This would restore the smooth trading relationship that benefitted many brands for over two decades.
Trade bodies like the Distilled Spirits Council of the United States (DISCUS) and the Comité Européen des Entreprises Vins (CEEV) are actively pushing for exemptions or a return to zero tariffs on wine and spirits. This would restore the smooth trading relationship that benefitted many brands for over two decades.
Here are some key points to watch as this story unfolds:
• Uncertainty remains: Although the 15% tariff applies broadly, the final list of exempted products—likely to include some drinks categories—is still being negotiated.
• Economic impact: European wine exports to the US were valued around €4.88 billion in 2024, supporting many jobs and related industries. Similarly, tariffs previously imposed led to sharp sales falls, as seen in 2018 when American whiskey exports to the EU plunged 20%.
• Industry hope: Many hope to avoid tariffs or see them lifted soon, returning to a “toasts, not tariffs” situation that benefits producers, retailers, and drinkers alike.
• Potential price rises: If tariffs stay, producers might increase prices to cover costs, affecting consumers and hospitality businesses.
• Uncertainty remains: Although the 15% tariff applies broadly, the final list of exempted products—likely to include some drinks categories—is still being negotiated.
• Economic impact: European wine exports to the US were valued around €4.88 billion in 2024, supporting many jobs and related industries. Similarly, tariffs previously imposed led to sharp sales falls, as seen in 2018 when American whiskey exports to the EU plunged 20%.
• Industry hope: Many hope to avoid tariffs or see them lifted soon, returning to a “toasts, not tariffs” situation that benefits producers, retailers, and drinkers alike.
• Potential price rises: If tariffs stay, producers might increase prices to cover costs, affecting consumers and hospitality businesses.
At Sip and Savvy, we will keep a close eye on developments, bringing you expert insights, trade updates, and advice on navigating these changing waters. Meanwhile, we invite readers, brand owners, and trade professionals to share their views and stories on how tariffs are affecting their businesses.
Stay savvy, keep sipping, and let’s hope for a favourable resolution for the drinks world.
Stay savvy, keep sipping, and let’s hope for a favourable resolution for the drinks world.