President Donald Trump’s warning of a potential 200 percent tariff on numerous European Union (EU) alcohol imports could severely impact a $10 billion market for EU producers in 2023, according to World Trade Organization (WTO) data. The move comes as tensions rise in a deepening trade war between the United States and the European Union.
Trump’s tariff threat targets EU wines and spirits in retaliation for the bloc’s proposed 50 percent levy on American whiskey. The U.S. represents the largest market for European alcohol, making the stakes high for the industry across various sectors.
Wine Exports Under Threat
In 2023, European vineyards shipped approximately $3.5 billion worth of wine to the U.S., representing roughly a third of their total exports, the WTO reports. French wines alone accounted for $2.6 billion of that total in 2024, according to French customs figures.
Currently, wine exports to the U.S. face a modest tariff of 0.8 percent, which adds only about 10 U.S. cents to the price of an average bottle, as noted by the French Wines and Spirits Exporters’ Federation (FEVS). However, the potential for a 200 percent tariff would devastate the industry, with FEVS managing director Nicolas Ozanam stating that “business stops” under such a severe duty.
Sparkling Wine’s Struggle
EU sparkling wine exports to the U.S. reached $1.6 billion in 2023, according to WTO data. French champagne producers alone sent 26.9 million bottles, worth around 810 million euros ($880 million), to American consumers last year.
Champagne brands, including Taittinger, have strongly criticized the tariff threat, with Taittinger president Vitalie Taittinger warning that some champagne prices could rise from $60 to $180 a bottle, making it “unaffordable for the American consumer.” Taittinger called the situation a “political game” that has unfairly targeted sparkling wine and other spirits.
At present, EU sparkling wines enter the U.S. market with a 2 percent tariff, but the proposed 200 percent tariff would dramatically raise prices and threaten the competitiveness of the sector.
Beer Exports at Risk
The EU’s beer exports to the U.S. totaled nearly $1 billion in 2023, about 40 percent of their total beer exports. This trade is currently free of tariffs. The Netherlands, home to the Heineken brand, is the second-largest beer supplier to the U.S., sending 416 million liters in 2024, according to the U.S. Commerce Department. If the tariff threat is realized, this duty-free trade could be disrupted.
Irish Whiskey Faces Uncertainty
Irish whiskey, a major export to the U.S., brought in $135 million in 2024, according to the Irish Whiskey Association. Director Eoin O Cathain warned that involving the whiskey sector in this trade dispute could jeopardize jobs, investments, and businesses. “There is no winner in a trade war,” O Cathain stated, emphasizing the potential devastation for the Irish whiskey industry.
With tariffs looming and uncertainty surrounding the future of EU alcohol exports to the U.S., European producers are bracing for the possible economic fallout from this escalating trade conflict.
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