European Wines And Spirits Face 15% Tariffs

Drinks imports to the U.S. are facing a tariff hike, as the U.S. and European Union continue to finalize a trade agreement that currently does not include a carveout for the wine and spirits industries. Negotiations are continuing, and a “goods-on-the-water” exemption has been announced. The 15% tariff represents a 50% hike on the previous 10% levy already faced by importers.

“It is extremely disappointing and utterly exasperating that the U.S. and EU have not yet come to an agreement on spirits, which is an easy win for the United States that will help boost our economic vitality during this challenging time for the hospitality industry,” said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (DISCUS).

At a press conference, Olof Gill, the spokesperson for the EU Commission, said the EU remains committed to seeking a carveout for the wine and spirits industry. And a diplomat with knowledge of the negotiations said that talks on exempting wine and spirits would continue, even after the tariff hike is officially announced, according to Reuters.

“It is critical for our great American distilleries, farmers, and hospitality workers across the country that President Trump secure a permanent return to zero-for-zero tariffs on spirits with the European Union,” said Swonger. “We urge President Trump and the negotiators to quickly resolve this issue, which will provide much-needed certainty to 1.7 million workers who depend on a vibrant U.S. spirits industry.”

Meanwhile, a “goods-on-the-water” exemption will allow at least some breathing room. “Products loaded onto a vessel within the next seven days and arriving in the U.S. before 12:01 a.m. EDT on October 5, 2025 will not be subject to the newly increased duties,” the president’s executive order late last night stated.

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