Winemakers slam EU’s push to include drink in €72bn US trade counterpunch

Europe’s wine sector has condemned the European Commission’s plan to include the grape-based beverage on its €72 billion retaliation list against US exports, warning that “there is no political, strategic or economic interest” in listing it as part of the escalating transatlantic trade dispute.

Ignacio Sánchez Recarte, who runs CEEV, a Brussels-based lobby group, told Euractiv that US and EU wine groups have “made it clear” that wine should be “kept out of trade disputes”, and urged the European Commission to clinch a trade deal with Washington before 1 August, when a 30% US blanket levy on EU exports is set to enter into force.

Other American-made spirits, including bourbon, are also on the Commission's list, obtained by Euractiv.

“The inclusion of US wines in the list of products for retaliation will not be efficient in reaching the EU's [goals],” Sánchez said. “There is no political, strategic or economic interest in including them!”

The US is the largest export market for EU wines, accounting for 27% of export value and 21% of volume. But with Trump’s 10% baseline tariff in place – and a hike to 30% looming on 1 August – EU winemakers, squeezed by slumping global demand, fear poking Washington could trigger an even harsher response.

The €72 billion package, which was presented to EU trade ministers in Brussels on Monday, is considerably lower than the €95 billion list originally foreseen in May, after Brussels sharply reduced the expected impact on US industrial goods.

The value of affected machinery imports has been lowered from €12 billion to €9.4 billion; chemicals and plastics from €12.9 billion to €7.7 billion; automotive products and parts from €12.3 billion to €8 billion; and electrical equipment from €7.2 billion to €6.1 billion.

The €6.4 billion in affected agrifood products remains the same, while the value of affected aircraft imports increased slightly, from €10.5 billion to €10.8 billion.

Sánchez’s remarks were echoed by the Aerospace, Security and Defence Industries Association of Europe (ASD), another Brussels-based lobby group.

“Trade wars have no winners – they create uncertainty, disrupt global supply chains, and ultimately harm industries and consumers on both sides,” an ASD spokesperson said, adding that it is “essential” for the US and the EU to reach a negotiation agreement.

Hildegard Müller, president of German auto industry group VDA, also called on Brussels and Washington to “find a solution as quickly as possible” to the trade dispute.

“With regard to any countermeasures, it must be ensured that they do not damage our own industry,” Müller said, adding that “it is important to consider” that two thirds of EU car exports to the US are made in Germany.

In addition to the €72 billion list, which must still be approved by member countries, the EU has already drawn up a retaliatory package targeting €21 billion worth of US goods, including motorbikes, diamonds, and soybeans.

These measures were originally set to take effect on Tuesday but their imposition was delayed until the start of next month following Trump's threatened tariff hike on Saturday.

The Commission, which oversees the bloc’s trade policy, initially proposed tariffs on a wider range of goods valued at €26 billion. Bourbon and wine, however, were removed from the list after Trump threatened tariffs of 200% on all EU alcoholic products if levies were applied to US whiskey.

It is currently unclear under what precise conditions either package will enter into force. EU diplomats, however, overwhelmingly expect the €21 billion list, at least, to be imposed next month if Trump follows through on his 30% tariff threat.

The Commission declined to comment.

(jp)

UPDATE: This article has been updated with comments from VDA.