EU-US Wine Tariff Talks: What Lies Ahead?
European wine and spirits are set to face a 15% tariff entering the U.S., beginning August 1, pending ongoing negotiations. EU officials aim to reduce tariffs to zero or match MFN fixed rates. A previous zero-tariff agreement on spirits has been disrupted by trade tensions.
Negotiations over tariffs will see European wine and spirits hit with a 15% tariff entering the U.S. from August 1, unless a fresh deal is reached. Officials expect talks to persist into autumn, aiming to ease the duty burden and potentially align with Most Favoured Nation (MFN) rates.
Previously, U.S.-EU agreements provided zero tariffs on spirits, disrupted in 2018 amid rising trade disputes. The EU responded to U.S. steel and aluminum tariffs under Trump by increasing duties on U.S. bourbon, later suspended. Now, both parties are seeking a resolution.
Past MFN wine rates suggest minimal costs per litre. The EU hopes to establish similarly favorable terms, paralleling current steel export practices. Diplomats forecast a flat 15% rate if unresolved, with spirits tariffs still under discussion.
(With inputs from agencies.)
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