European Commission unveils new wine sector support measures amid Trump’s tariff threats

The European Commission (EC) has proposed a range of “targeted” measures to help secure Europe’s wine sector against surplus production, cross-border trade barriers, and extreme weather events with enhanced funding. While industry associations have welcomed the EC’s policy package, they maintain the measures could “fall short” if the ongoing trade tensions between the EU and the US spill over to the wine sector. 

EU wine producers have faced long-time challenges amid a dip in overall alcohol consumption, increased production costs, and climate shocks. Moreover, trade disputes between the EU and the US have stoked fears of further uncertainty, with US President Donald Trump threatening to impose a 200% tariff on all EU wines and alcoholic products if the EU does not reconsider planned levies on US whisky.

“The EC decided to delay the implementation of the first set of countermeasures (where Bourbon was targeted) until mid-April. A clear signal from the EC that it is still aiming at solving the trade dispute through negotiation,” Ignacio Sánchez Recarte, secretary general at the Comité Européen des Entreprises Vins, the European association of wine companies, tells Food Ingredients First.

“I remain relatively optimistic concerning the non-inclusion of US wines in the EU retaliation list because, I think, we have demonstrated that including US wine (and spirits) will not be efficient in reaching the EU’s general interest aimed with these commercial policy measures.”

Sánchez Recarte notes that while these steps are positive, there is no reassurance as, ultimately, solving the dispute is not in the hands of the EC. EU wines are already feeling the heat of Trump’s threats.

“The closure of the US wine market for our wines is already effective as importers stopped all shipments for fear of possible tariffs’ implementation. This costs EU producers €100 million (US$108 million) weekly.”

“To render the situation more complex, we are now waiting for the April 2 decision on reciprocal tariffs. We hope wine will not be affected, but who knows.”

Enhanced climate change funding

The EC package suggests key changes to the wine policy framework by allowing member states to act better against grubbing-up (pulling out unwanted or excess vines) and green harvesting (removing unripe grapes before harvest).

According to the executive body, such practices will help stabilize production and secure producers against financial pressures.

“The EU is the global leader in wine production and exports. Beyond the economic weight of the sector and the savoir-faire of our wine producers, vineyards are part of our landscapes and cultural heritage. This is why I am now presenting this package of measures, directly responding to the requests of the sector and the member states,” says Christophe Hansen, Commissioner for Agriculture and Food.

“I am confident that our proposals will help stabilize the market and enable the producers to seize new opportunities and respond to evolving consumer expectations.”

Under the new framework, producers will have more flexibility regarding replanting authorization, which is generally valid for three years. Wine growers usually decide on the varieties and types of wine to produce in the new vineyards, prepare the soil, and source the new vines in the validity period.

However, major wine-producing regions like Spain and Italy have been unable to follow the required timelines due to prolonged drought or torrential rain spells. The EC notes that the additional flexibility will help these growers base their investment decisions on the current context.

The executive body has proposed that it will help member states cover up to 80% of the eligible investment costs toward climate change mitigation and adaptation.

According to Sánchez Recarte, smaller wine producers should be able to access the increased climate adaptation funds.

“In the wine sector, the policy is particularly attentive to providing support to all operators, especially SMEs (the vast majority). Implementing the measures is in the hands of member states, but certain controls are foreseen in the regulation.”

Simplifying labeling and marketing rules

The EC announces that communicating the properties of innovative products will be easier, with clearer denominations for lower alcohol wine products across the single market.

“All no-and-low alcohol category categories recorded impressive gains and will continue to grow. This category still represents a small fraction of the market, but we must be able, as wine, to propose a qualitative wine-based alternative for consumers,” says Sánchez Recarte.

“The EC is proposing some rules, following our request, to facilitate the valorization of dealcoholized and partially dealcoholized wines. The new rules will allow a harmonized and better presentation of these products and resolve some technical issues (such as the production of sparkling de-alcoholized wines). A good support for wine companies willing to enlarge their offer to consumers.”

Additionally, consumers will have easier access to information as the EC considers a more harmonized approach to labeling and simple cross-border trade, which will reduce costs.

The executive body also plans to release funds for producers to develop and promote wine in rural areas under wine tourism.