Imposed US tariffs take effect on European alcoholic beverages
In a blow to the European wine industry, a new trade agreement between the US and EU enacted in late July 2025 has set a 15% tariff on most EU goods, including wine. This tariff increase from the previous 10% affects Portuguese producers, as they are part of the EU.
The 15% tariff on Portuguese wines exported to the US comes at a time when the sector is already facing difficulties. More than 500 producers from the Douro region, known for Port wine, recently protested due to a sharp drop in grape prices, rising production costs, and contract cancellations.
The US remains the second-largest destination market for Portuguese wines, with €102.1 million worth sold in 2020, representing 2% growth in 2024 according to ViniPortugal. The imposition of the 15% tariffs is another escalation in trade tensions between Washington and Brussels.
EU trade officials emphasize the need to protect EU wine and spirits exports to the US and are awaiting clarity on whether wine will be exempted from these tariffs, but no exemption is confirmed yet. The discussions resulted in an intermediate rate that still seriously concerns the European wine sector.
Bernard Arnault, chairman of LVMH and Europe's richest man, is actively lobbying to secure exemptions for wine and spirits from the tariffs. LVMH, which 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. The prospect of greater difficulty in accessing the North American market exacerbates these concerns for the Portuguese wine sector.
The US market represented 2% growth in 2024 for Portuguese wine exports, according to ViniPortugal. The imposition of the 15% tariffs is expected to have a significant impact on the sector. Estimates suggest that the uncertainty has led North American importers to suspend orders for European wines, costing European companies around €100 million per week.
Arnault stated that reaching an agreement with the US is very important for Europe and he hopes to convince Europe to adopt a constructive attitude. The discussions on wine and spirits tariffs will continue throughout the fall. The current status is that the tariff remains in effect as of early August 2025.
- The imposition of the 15% tariffs on Portuguese wines exported to the US is a significant concern for the Portuguese wine sector, given the sector's 2% growth in the US market in 2024, as reported by ViniPortugal.
- Bernard Arnault, Europe's richest man and chairman of LVMH, is actively lobbying to secure exemptions for wine and spirits from the tariffs, as the prospect of greater difficulty in accessing the North American market exacerbates concerns for the Portuguese wine sector.
- The current trade tensions between the US and EU, reflected in the 15% tariff on most EU goods including wine, might affect not only the Portuguese wine industry but also broader sectors such as finance, politics, and general news, given the potential economic and political consequences.
