• A new 15% tariff on all EU wine and spirits is set to begin August 1, 2025, following a trade deal that excluded the sector.
  • Trade group analysis indicates the levy could raise $987 million in federal revenue and push wholesale prices up by over 80 cents per gallon.
  • Industry representatives on both sides of the Atlantic are lobbying for a last-minute carve-out, with further negotiations expected this autumn.

The United States will impose a blanket 15% tariff on all wine and spirits imported from the European Union starting next August, a move that trade groups estimate will add over 80 cents to the wholesale price per gallon and generate nearly $1 billion in federal revenue once lost sales are factored in. The decision, which was confirmed as part of a recent US-EU trade agreement, notably left the alcohol sector without the exemptions it had aggressively lobbied for.

According to people familiar with the matter, the tariffs are expected to be fully passed through the supply chain, impacting US importers, distributors, restaurants, and ultimately consumers. The analysis from a major trade group suggests the levies could net the US Treasury approximately $987 million, a figure that accounts for an anticipated decline in import volumes as prices rise.

“This is a significant escalation that will disrupt the entire US market,” said a representative for a US importer who asked not to be named due to the sensitivity of ongoing talks. “We’re looking at higher prices across the board, not just for European imports but for domestic products as well, as demand shifts.”

The EU Commission and major industry groups have expressed deep disappointment, arguing that the tariffs undermine years of stable trade. Efforts to secure a carve-out for traditional products like French Champagne, Italian wine, and Scotch whisky before the deal was finalized were unsuccessful. However, officials on both sides signal that negotiations are not completely dead. Further discussions are tentatively planned for the autumn, though the prospects for a reversal remain uncertain.

In a move seen as a goodwill gesture to encourage a broader resolution, the EU has temporarily suspended its own planned retaliatory tariffs on US goods until February 2026. The US wine and spirits industry, which had enjoyed tariff-free or low-tariff access for years, now faces the prospect of rapidly restructuring its sourcing strategies ahead of the August 1, 2025, effective date.

This article was updated to clarify that the $987 million revenue projection accounts for lost sales.