No deal yet , U.S.-EU Leave Wines Exposed to Tariffs

European negotiators have spent weeks pleading with Washington to spare wine and spirits from new tariffs. But as the U.S. and EU close in on a trade deal, the message is sinking in: alcohol won’t escape the squeeze.

A 15 percent duty is on the table—ending nearly 30 years of tariff-free trade—and Europe’s drinks industry is bracing for impact.

The trouble began last month, when President Trump and European Commission chief Ursula von der Leyen announced a plan to slap tariffs on a wide swath of European goods. Hopes that alcohol might be spared never got far.

Since then, officials on both sides have been hammering out the details. Washington sent over a draft. Brussels pushed back with edits. But the line on wine and spirits hasn’t budged. The prospect of a last-minute exemption is fading fast.

The 15 percent levy may be lighter than the eye-watering 200 percent duties once floated by the Trump administration, but for exporters, it’s still a gut punch.

“The European Commission remains determined to secure the maximum number of carve-outs,” spokesman Olof Gill said Tuesday in Brussels.

Producers are already sounding alarms. French exporters call the tariff an “extremely violent shock.” U.S. distillers fear Brussels will retaliate with tariffs of its own. Importers say the costs are immediate: containers of European bottles now come with tens of thousands of dollars in extra charges, wiping out profit margins overnight.