Donald Trump’s recent victory in the presidential election has brought attention back to the topic of import tariffs, particularly concerning wine. As he is set to become the 47th president of the United States, speculations are rife about whether he will implement new tariffs on wine and other goods. Trump himself expressed a fondness for tariffs during his campaign, stating that the word "tariff" was his favorite.
While it remains uncertain how his campaign rhetoric will manifest into actual policies, other factors are influencing the wine industry, such as a decline in consumption. The US Wine Trade Alliance (USWTA) has consistently argued that increased tariffs on imported wines could limit consumer choices and elevate costs for domestic producers. Their president, Ben Aneff, emphasized that the belief that consumers would switch from foreign to domestic wines is a misconception.
In 2023, the US maintained its position as the world’s leading wine-importing nation by value, despite an 11% decrease in shipments compared to 2022, totaling nearly €6.2 billion. Volume-wise, Germany and the UK imported more wine than the US.
European trade groups are remaining cautious following Trump’s reelection. Miles Beale, CEO of the Wine & Spirit Trade Association in the UK, noted concerns stemming from Trump’s previous term, particularly relating to tariffs amid broader trade tensions. However, he also hinted at the potential for a free trade agreement between the US and the UK.
The French wine and spirits export body, FEVS, extended congratulations to Trump and called for constructive dialogue between the US and EU, highlighting existing collaborations in the wine and spirits sectors. During Trump’s first term, tariffs were imposed on certain wines and spirits imports linked to broader industrial disputes involving US and EU aerospace companies.
In 2021, there was a significant drop in American imports of French wines, attributed to these tariffs, which had amounted to a loss of €400 million. Though the Biden administration paused the aerospace dispute for five years, a permanent resolution remains elusive.
Additionally, the US Distilled Spirits Council has raised alarms about the possibility of EU tariffs on American whiskies reverting to a higher rate of 50% beginning in March 2025, tied to unresolved disputes over steel and aluminum subsidies. The wine and spirits sector has often been affected by such trade disputes, exemplified earlier this year when China lifted punitive tariffs on Australian wines that had been enforced since late 2020.