The EU said on Thursday, July 31, that it expects its wine sector to be hit along with most European products as US tariffs kick in this week, but negotiations are ongoing to secure a carve-out. Brussels and Washington struck a trade deal on the weekend which will see most EU exports face a 15% US tariff from Friday, with a number of exemptions, such as the aircraft sector, having been locked in so far. France, Italy and other wine making countries have pushed for zero tariffs for alcohol, including champagne, wines and spirits among carve-outs in the final deal, but those talks are ongoing.
"It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the US tomorrow, and therefore that sector, as with all other economic sectors, will be captured by the 15% ceiling," European Commission spokesman Olof Gill told a press conference. The commission, which is in charge of trade policy for the 27-nation bloc, was determined to achieve and secure the maximum number of carve-outs, including for wine and spirits, he added. "We are continuing to negotiate with our US partners," he said.
The United States is the largest export destination for European wines, accounting for 27% of all exports in value, according to industry figures. The 15% rate agreed after months of negotiations is much higher than pre-existing US tariffs on European goods – averaging 4.8%. Yet it mirrors the status quo, with companies facing an additional flat rate of 10% imposed by Trump since April.
The "framework" agreement struck on Sunday however only laid out the broad principles of the deal, and many details were still unclear or under negotiation. Gill said work was ongoing to finalise a joint statement that, although still not legally binding, should bring some clarity. "The US has made these commitments. Now it's up to the US to implement them. The ball is in their court," said Gill.
On the US side, the majority of the measures in the deal are expected to be carried out by executive order.