Impact of US-EU Trade Deal on Alcohol Industry

The US and EU recently reached a framework trade agreement, imposing a 15% tariff on most EU goods, but alcohol products may be exempt. Announced by US President Donald Trump and EU Commission President Ursula von der Leyen, the tariff rate is half the initially threatened 30%, aiming to provide stability. However, European businesses still find the 15% tariff too high, having hoped for a zero-tariff deal.

The agreement may exempt certain products, with alcohol being one of them. Chris Swonger, CEO of the Distilled Spirits Council of the US (Discus), called this a good news for US-EU relations and expressed hope for restoring zero tariffs on alcohol. French Trade Minister Laurent Saint Martin also expects alcohol to be exempt, but the specific list remains unpublished, leaving uncertainty.

Analyst Verushka Shetty noted that alcohol companies often become trade war casualties, but large firms like Diageo and Rémy Cointreau, with high US market shares, may be most affected. Companies might adjust prices to offset rising costs.

EU alcohol exports to the US are valued at around €9 billion, with the US being the largest market for Irish whiskey (34% of exports), as well as for champagne (18%), cognac (43%), and Spanish and Italian wines. Italian Chianti producers have already started shifting to Asian, African, and South American markets to mitigate US tariff impacts.

The European Committee of Wine Companies (CEEV) urged the inclusion of alcohol in the deal, warning tariffs would worsen trade barriers. CEEV Secretary-General Ignacio Sánchez Recarte emphasized that EU wine exports benefit the US economy, generating €4.5 in distribution and hospitality revenue for every €1 exported, creating a win-win relationship.

2025-07-29

Source - https-//www.thedrinksbusiness.com/2025/07/what-the-us-eu-trade-deal-means-for-drinks-firms/