While the protests from Bordeaux’s famed vineyards have been the loudest, the new US-EU trade deal poses a threat to the entire European beverage alcohol industry. From Scotch and Irish whiskey to Italian prosecco and German beer, a vast array of products will face a 15% US tariff, impacting a cornerstone of Europe’s agricultural economy.
The deal’s failure to secure a broad exemption for alcoholic beverages means that thousands of producers, many of them small, family-owned businesses, will see their access to the lucrative US market constrained. The United States is the single most important export destination for many of these products, and a 15% tariff can be the difference between profit and loss.
The economic pain is not confined to one country. While France’s €5 billion wine export figure is staggering, the UK’s Scotch whisky industry, Ireland’s whiskey distillers, and Italy’s sparkling wine producers are also multi-billion dollar exporters to the US. They are all caught in the same predicament, facing tariffs stemming from a dispute in which they played no part.
This widespread impact underscores the deep disappointment across the continent. The deal is seen as having thrown the entire beverage sector under the bus to secure an agreement on cars. This has united a diverse group of producers from across the EU in their criticism of the pact, creating a powerful, cross-border lobby for future relief.