US drinkers will pay more for European wine and spirits as President Trump’s trade deal with the European Union (EU) hits winemakers, vendors, and consumers on both sides of the Atlantic.
The trade deal, initiated on August 1, locked in a maximum 15% tariff on most EU exports to the US. Despite lobbying by major exporters, such as France and Italy, the EU’s nearly €30 billion wine and spirits industry was not granted an exemption.
President Trump previously referred to the idea of tariffs on EU wine and spirits exports as “great for the Wine and Champagne businesses in the US” in a March 13 Truth Social post.
However, producers and importers warn that US consumers will not escape the damaging economic blow these levies could inflict. The US Chamber of Commerce has warned about the influence of tariffs, particularly on small businesses and households.
“Tariffs are having a real and devastating impact on thousands of small businesses across the nation — and on all Americans — as uncertainty, rising costs, and cancellations are hitting home,” they said in a report on August 7.
The association estimated the tariffs imposed so far will cost the typical household about $4,000 per year.
French Vineyards Brace for US Tariffs
France is the world’s largest exporter of wine and spirits. The EU’s second-largest economy exported €12.1 billion worth of wine and spirits, €8.1 billion (66.7%) in wine and €3.8 billion (31.8%) in spirits in 2024.
French wine exports amounted to nearly 41% of the EU’s total yearly wine and spirits exports, according to data from Eurostat.
In Bordeaux, one of France’s premier regions for viticulture, winemakers have started bracing for impact. The US is the EU’s biggest wine and spirits market, importing around 30% (€8.9 billion) of the bloc’s products in 2024.
Americans consume 20% (€400 million) of Bordeaux’s total annual output.
The region, which has produced many of the world’s most prestigious wines for centuries, has encountered a series of challenges.
“It’s bad news, yet again,” Laurent Dubois, part of the …