U.S.-EU Negotiations: Wine Industry Awaits Zero-Tax Framework
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Ongoing discussions between the U.S. and the European Union (EU) revolve around the potential inclusion of the wine industry in a zero-tax framework upon entry into the U.S. Here's a breakdown of the current status:
Background and Recent Developments
In the middle of 2025, the U.S. and EU reached a consensus on a framework imposing a 15% U.S. import tariff on most European goods, including wine, effective from August 1, 2025. This tariff replaced an initial proposal of a two-tier system (10% + 20%)[1].
Progress in negotiations has been more substantial for spirits than for wine, with discussions leaning towards a "zero-for-zero" tariff regime for spirits[1][2].
Position of Wine Industry
The wine industry, represented by coalitions such as Toasts Not Tariffs, is advocating for exemptions from these tariffs. They contend that wine is distinct to its place of origin and should not be subject to tariffs designed for more generic goods[3][4].
Current Negotiation Outcomes
Despite these efforts, the current negotiations have not resulted in any exemptions for wine. The draft agreement being finalized with the EU does not provide for a wine and spirits exemption, suggesting that a 15% tariff on European wines is likely to remain[3][5].
Future Possibilities
There are ongoing discussions about potential future agreements that could lead to a zero-tariff regime for wine. However, these negotiations are still in progress. The EU has agreed to postpone retaliatory tariffs for six months while these discussions continue[2]. Yet, there is no assurance that wine will be included in any future exemptions[4].
Stay tuned for updates on this developing story as the negotiations progress.
The wine industry, represented by coalitions such as Toasts Not Tariffs, is urging the U.S. and European Union (EU) to reconsider the 15% U.S. import tariff on European wines, arguing that wine is unique to its place of origin. Despite their efforts, the current negotiations have not resulted in any exemptions for wine in the framework.
