European winemakers are preparing for a major blow as U.S. President Donald Trump’s administration moves ahead with a 200% tariff on imported European alcohol, set to take effect Wednesday. The decision escalates a long-simmering trade dispute and threatens to upend a cornerstone of the continent’s economy and cultural heritage.
The European Union, which produces 60% of the world’s wine and accounts for 60% of global exports, sent $14.1 billion worth of alcohol to the United States in 2024. The new tariffs could triple the retail price of European wines in the U.S., with a $15 bottle potentially rising to $45, significantly reducing consumer demand and squeezing both European producers and American importers.
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European wines (Photo: Reuters)
The wine sector in Europe has already been in decline for over a decade due to health-conscious consumer trends, rising energy costs, climate-related challenges and demographic shifts — particularly the growth of Muslim populations that typically abstain from alcohol. The European Commission has pledged support through marketing campaigns and the promotion of low-alcohol alternatives, but officials admit that reduced production may be unavoidable, threatening thousands of jobs.
The tariff is the latest move in a broader trade battle reignited by the Trump administration. During his first term, Trump imposed tariffs on European steel and aluminum, prompting the EU to retaliate with duties on American products such as motorcycles, whiskey and peanut butter. Now, alcohol is the newest target in what many see as a politically charged standoff.
“The issue isn’t just economic — wine is cultural, emotional, part of European identity,” a European negotiator told the BBC. “President Trump knows this. He’s aiming for the heart, not just the pocketbook. It’s very difficult to conduct emotional negotiations with a president who doesn’t drink alcohol and prefers Diet Coke. Many times during the discussions, we feel like we’re trying to clap with one hand.”
In France, where the wine industry is central to both the economy and national pride, producers are already feeling the effects. Vineyard owners have reported mass order cancellations from American importers, and layoffs have begun. “I think Trump wants to eliminate the European wine market,” said Pierre Geoffray, a winemaker in Avignon, speaking to Canadian public broadcaster CBC.
2Photo: AP
Photo: AP
Public sentiment in France has shifted sharply, with only 20% of adults now viewing the U.S. as an ally, according to recent polls. Industry leaders are calling on the French government to urgently pursue a negotiated solution, warning that tariff wars tend to leave all sides worse off — with French producers standing to lose the most.
While the U.S. wine industry may benefit from a drop in European competition, it is unlikely to fully fill the gap. Domestic producers currently supply just 66% of the wine consumed in the U.S., down from 2009 levels, when California alone met that share. Industry experts say consumers are not strongly loyal to wine brands, so they may switch to domestic options — but not without disruption.
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The U.S. alcohol market is also facing backlash abroad. Though Europe buys only a small share of American alcohol — 1.5% of U.S. wine and 3.8% of its beer — decisions by Canadian provinces Ontario and British Columbia to pull American products could hit harder. Canada accounts for 40% of U.S. wine exports and 10% of beer exports.
Meanwhile, thousands of bottles of wine, Champagne, Prosecco, and aperitifs remain idle in storage across Italy, France, Spain and Portugal. Observers say the U.S. wine economy is mirroring broader foreign policy trends under Trump — distancing from traditional EU allies in favor of closer ties with nations like Australia and Argentina.