The latest U.S.–EU trade framework is raising alarm bells across the wine world, as the deal maintains steep tariffs on wine and spirits—a move that leaves producers reeling and consumers, well, paying more.

Tariffs Hit Hard—Wine and Spirits Excluded Again

Despite hopes for exemptions, the new trade framework imposes a 15% tariff on wine and spirits, with no relief in sight yet for the sector. European Trade Commissioner Maroš Šefčovič confirmed that these categories were dropped from the initial agreement, though the European Commission remains committed to reintroducing them for future consideration.

France, in particular, is sounding the alarm. The nation’s agriculture minister and export federation have warned that the tariffs could slash annual revenue by €1 billion, hitting industries deeply reliant on U.S. sales.

Higher Costs, Shrinking Margins

For consumers, the impact will be felt in their wallets. A recent industry outlook estimates increases of up to 86 cents per gallon for wine, 82 cents for spirits, and a modest 3 cents for beer. That could translate into an extra $1 per drink or over $12 per bottle at the bar.

Meanwhile, a coalition of 57 alcohol groups, including major players like Diageo and Pernod Ricard, warned that the tariffs could cost the U.S. nearly $2 billion in sales and put 25,000 jobs at risk, especially ahead of the lucrative holiday season.

Industry Voices: Disappointed, but Still Hopeful

Industry leaders from both sides are disappointed—and vocal. “A huge disappointment,” said Gabriel Picard from France. On the American side, the Distilled Spirits Council emphasized that without a permanent return to zero tariffs, “export planning and job growth” remain uncertain.

Why This Matters