Imposition of tariffs on European wines and spirits by the US commences

In a move that escalates trade tensions between Washington and Brussels, the United States has imposed a 15% tariff on most European Union exports, including wines from Portugal, effective from July 31, 2025 [1]. This tariff is an increase from the current 10% and has raised concerns within the European wine sector, particularly in Portugal.

The US was the second-largest destination market for Portuguese wines in 2020, with €102.1 million worth of wine exported [2]. The Douro region, known for Port wine, exported almost 36 million euros to the US in the same year [2]. However, the new tariff could exacerbate the difficulties already faced by the Portuguese wine sector, which has seen more than 500 producers protesting over grape price drops, rising production costs, and contract cancellations [4].

Negotiations are ongoing between the EU and the US to secure exemptions for wine and spirits, with countries including France, Italy, and presumably Portugal pushing for zero tariffs on these alcoholic products [1]. Bernard Arnault, chairman of LVMH and Europe's richest man, is actively lobbying both the Trump administration and the European Commission to secure exemptions for wine and spirits [5]. LVMH, a company that owns brands such as Moët & Chandon and Hennessy, derives nearly 7% of its revenue from the wine and spirits sector in the first half of 2025 [5].

The decision follows the failure of negotiations between Brussels and Washington to reach a more favourable trade agreement [6]. The uncertainty over tariffs has resulted in North American importers suspending orders for European wines, costing European companies approximately €100 million per week, according to CEEV estimates [6]. The US market represented 2% growth in 2024 for Portuguese wine [3], but the new tariff could potentially reverse this trend.

Discussions on wine and spirits tariffs will continue throughout the fall [1]. The senior diplomat involved in the negotiations predicts that the 15% tariff on European wines will remain fixed [7]. The finalization of the joint statement on the framework trade agreement has been agreed between Trump and European Commission President Ursula von der Leyen, but it does not seem to have resolved the issue of wine and spirits tariffs [8].

In summary, Portuguese wines currently face a 15% tariff when exported to the US under this new trade deal, with negotiations to potentially exclude wine and spirits ongoing but not yet successful [1][3]. The Portuguese wine sector is in a vulnerable position due to the tariffs in one of its most valuable and strategic markets, and the ongoing negotiations will be closely watched by the industry.

References: [1] European Commission. (2025). Press release: EU-US trade talks: Commission welcomes agreement on a framework for negotiations. [online] Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_25_4589 [2] ViniPortugal. (2021). Portuguese Wine Exports. [online] Available at: https://www.viniportugal.pt/en/portuguese-wine-exports/ [3] ViniPortugal. (2025). US Market. [online] Available at: https://www.viniportugal.pt/en/us-market/ [4] The Guardian. (2025). Portuguese wine producers protest over grape price drops, rising costs and contract cancellations. [online] Available at: https://www.theguardian.com/business/2025/jul/01/portuguese-wine-producers-protest-over-grape-price-drops-rising-costs-and-contract-cancellations [5] Financial Times. (2025). Bernard Arnault lobbies Trump administration over wine tariffs. [online] Available at: https://www.ft.com/content/b934a07a-54ca-42e0-a50c-658e73710f23 [6] CEEV. (2025). Wine Europe calls on the EU and US to swiftly address wine tariffs. [online] Available at: https://wine-europe.org/wine-europe-calls-on-the-eu-and-us-to-swiftly-address-wine-tariffs/ [7] Politico. (2025). Senior diplomat: 15% tariff on EU wines will remain fixed. [online] Available at: https://www.politico.eu/article/senior-diplomat-15-tariff-on-eu-wines-will-remain-fixed/ [8] Euractiv. (2025). US-EU trade: Trump and von der Leyen agree on framework for future deal. [online] Available at: https://www.euractiv.com/section/agriculture-food/news/us-eu-trade-trump-and-von-der-leyen-agree-on-framework-for-future-deal/

In light of the 15% tariff on Portuguese wines imposed by the United States, the finance and business sectors, specifically in Portugal, are closely monitoring ongoing negotiations between the EU and US to potentially exclude wine and spirits from the tariffs.
The current trade tensions between Washington and Brussels, escalated by the increased tariff on European Union exports, have raised concerns within the Portuguese finance and politics, as the US was the second-largest destination market for Portuguese wines in 2020.
The new tariff has the potential to exacerbate the existing difficulties faced by the Portuguese wine sector, as it is one of the most valuable and strategic markets, accounting for 2% growth in 2024 for Portuguese wine, and exporting almost €36 million from the Douro region, famed for Port wine, to the US in the same year.