“A devastating hit”: Trump threatens 200% tariff on EU wines and spirits as trade dispute escalates

US President Donald Trump has threatened to impose a 200% tariff on all wines and alcoholic products coming to the US from Europe if the EU does not revoke its planned levies on American whisky. The warning has confirmed the EU alcohol industry’s fears of retaliation from the US, which is the biggest importer of European spirits outside the EU. 

“If the proposed 200% tariffs on EU wines are implemented, it would effectively shut down the US market for EU wines — a devastating hit for our industry,” Comité Européen des Entreprises Vins (CEEV), the European association of wine companies, tells Food Ingredients First.

“The US accounts for 27% of our total exports, and no alternative market could compensate for such a loss. In value €4.5 billion (US$4.8 billion).”

Trump’s threat comes after the European Commission (EC) announced that it would enforce counter-tariffs on US goods exports worth up to €26 billion (US$28 billion) from April onwards, proportional to the economic scope of US tariffs on EU aluminum and steel imports.

Products subject to these tariffs include US wines and other alcoholic beverages like bourbon.

“The EU, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the US, has just put a nasty 50% tariff on whisky,” Trump wrote on the social media platform Truth Social.

He added that the US 200% tariffs move would be “great” for domestic businesses.

Wine and spirits industries urge de-escalation

Amid the escalating economic conflict, EU wine and spirits industry representatives have urged the US and EU governments to stop using the sectors as a “bargaining chip.”

“spiritsEUROPE is deeply alarmed by the renewed threat of tariffs on EU and US spirits — once again, as part of an entirely unrelated dispute. This cycle of tit-for-tat retaliation must end now. We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us,” the trade group tells Food Ingredients First.

Ignacio Sánchez Recarte, secretary general at CEEV, agrees that wine is being dragged into a trade dispute the sector cannot help resolve, and it isn’t the first time.

He notes that past conflicts, like the 17-year Airbus-Boeing dispute — in which French wines were targeted under a spate of US taxes — highlight the need to keep the drink out of such cases.

“At the time, we estimated potential losses of around €1 billion (US$1.08 billion). But geopolitics works like this. Again, we are hostage to a dispute we cannot help solve because we are not part of it. It is frustrating, and it enrages us. We will continue to request the EC not to include wine in its retaliatory list,” Sánchez Recarte tells us.

Potential losses for transatlantic trade

CEEV’s Sánchez Recarte adds that the economic impact of a 200% tax would mean losses “from day one,” but the overall damage would run deeper.

“We need to consider all the investments our companies have made in the US for years — promotion campaigns, joint-ventures, local teams, contract negotiations, etc., and even in Europe — developing wines more in line with US consumer preferences.”

“[It is] impossible to put a figure [on the losses], but the unit to be used is “billions.”

spiritsEUROPE reiterates that open markets create mutual benefits, and the spirits trade “exemplifies” that.

“EU spirits companies have invested heavily in US production, including American whiskey, just as US spirits companies own distilleries across the EU, producing regionally distinctive products tied to local heritage. We are each other’s top markets — interwoven by investment, tradition, and shared success,” the organization tells us.

CEEV’s Sánchez Recarte notes that the economic impact of a 200% tax would mean losses “from day one,” but the overall damage would run deeper.“Reimposing tariffs would be a step backward — hurting businesses, workers, and consumers on both sides,” the body notes, adding that transatlantic spirits trade has thrived tariff-free since 1997 despite momentary but damaging disturbances.

“Our sector is fully united in its commitment to keeping it that way.”

On whether a long-term EU-US agreement on wine tariffs could secure the sector from future disputes, Sánchez Recarte says EU and US stakeholders have been advocating for such a deal for years.

“On both sides of the Atlantic, our companies want wine out of any trade dispute, and we even asked for a ‘0-for-0’ deal: eliminating wine tariffs.”

If imposed in their current form, he says the tariffs would “break the delicate balance” on which the wine sector relies.

EU wine sector’s challenges

The EU wine sector, in particular, has also been grappling with enduring challenges such as climate change, inflation, and a dip in consumption overall.

“Wine companies have a lot of resilience, but lately, we have too much on our plate,” Sánchez Recarte notes.

He believes the EU wine sector will remain competitive in the EU market and in places where the EU has secured free trade agreements (such as in Canada, Japan, and Mexico) despite the setbacks.

“But we need to look beyond wine. Today, we need to invest to reach new consumers, reverse the shift in consumer trends, and develop new products (no-and-low alcohol wines), and for all of this, we need money to invest. That’s the critical question. Are we still able to invest in our future? Maybe not at the level we should,” Sánchez Recarte concludes.