Wine and spirits industry left on ice as sector overlooked in EU-US trade negotiations

As the EU–U.S. trade deal advances, the wine and spirits industry on both sides of the Atlantic remains iced out.

The new agreement, secured by President Donald Trump over the weekend, imposes a 15% tariff on European goods but does not contain a decision regarding the wine and spirits industry. European Commission President Ursula von der Leyen said on Sunday that an agreement for the alcohol trade market would be put together in the coming weeks.

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When it comes to booze, Europe is America’s top client, importing approximately $1.2 billion in U.S. spirits in 2024, according to figures provided by the Distilled Spirits Council of the United States, a Washington-based trade association. 

Alcohol also ranked among the European Union’s top exports to the U.S., totaling approximately $10.5 billion last year, according to Eurostat data.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said that eliminating tariffs entirely would be the ideal outcome of the trade negotiations.

He cited a 60% surge in American whiskey exports in 2022 following the suspension of the European Union’s 25% retaliatory tariffs, which had been in place since 2018.

“We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for U.S. and EU spirits products, which will benefit not only our nation’s distillers, but also the American workers and farmers who support them from grain to glass,” Swonger wrote in a statement.

“It’s time to return to toasts, not tariffs,” he added.

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The European Committee of Wine Companies, a Brussels-based wine trade organization, also proposed a zero-for-zero tariff arrangement.

“The United States of America remains the largest export destination for EU wines, representing 27% of EU wine exports in value and 21% in volume. The U.S. wine market is fundamental for the economic sustainability of the EU wine sector and the rural communities it sustains,” the group wrote in a statement.

The ongoing booze boycott in Canada

Canada’s retaliatory boycott of American spirits, prompted by Trump’s tariffs, has significantly impacted U.S. liquor exports.

The diplomatic fallout has led to a more than 66% decline in U.S. spirits sales in Canada, according to economic data compiled by trade association Spirits Canada.

Ontario, Canada’s largest spirits market, saw U.S. spirits drop by 80%, according to the group, which represents Canadian manufacturers and marketers of distilled spirits.

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Last year, the U.S. imported $621 million worth of Canadian spirits, according to data complied by the Distilled Spirits Council of the United States. Meanwhile, Canada imported $221 million worth of U.S. spirits.

As it stands, the U.S. and Canada have not reached a trade deal with the Aug. 1 deadline rapidly approaching. Trump has previously said that he will not offer delays or extensions to the tariff deadline.