A transatlantic trade dispute escalated dramatically this week as U.S. officials proposed 200% tariffs on European wines and spirits, sparking forceful responses from EU leaders and industry groups. The move comes after the EU imposed 50% tariffs on American whisky in retaliation for earlier U.S. metal import duties.
French officials led the charge against what they called an "unacceptable pressure tactic." Laurent Saint-Martin, France's Minister Delegate for Foreign Trade, stated on social media: "We stand united with our European partners to defend our strategic industries." The pledge carries weight given France's standing as the world's second-largest wine exporter, with €12 billion in annual revenues.
European Commission President Ursula von der Leyen struck a measured tone during her visit to South Africa: "While we prefer dialogue, Europe will not hesitate to protect its economic interests." Analysts note the tariff threats could particularly hurt small European vineyards already struggling with inflation and supply chain challenges.
Industry groups on both continents sounded alarm bells. The Federation of French Wine and Spirits Exporters warned of "existential threats" to family-owned producers, while U.S.-based spiritsEUROPE urged policymakers to "keep alcohol out of unrelated trade wars." The Irish Whisky Association highlighted potential price hikes for consumers worldwide.
Dr. Luka Brkic, a Croatia-based trade policy expert, cautioned: "This dangerous cycle helps no one – least of all workers and consumers caught in the crossfire." As negotiations remain possible, businesses brace for impacts on global supply chains and holiday season pricing.
