European Wine Industry Grapples with Potential 200% Tariff Threat

The European wine industry faces severe challenges as US President Donald Trump threatens a 200% tariff on European wine, Champagne, and other spirits in response to EU retaliatory tariffs. This move could significantly impact small wineries in France, Italy, and Spain, potentially crippling their US market presence.

The European wine industry is at a crossroads as US President Donald Trump threatens a 200% tariff on European wine, Champagne, and spirits following EU retaliatory tariffs on US products. The move poses a looming crisis for major wine-producing countries like France, Italy, and Spain, where smaller wineries face possible ruin.

France's wine industry, worth 4 billion euros in US exports annually, stands to suffer heavily. Gabriel Picard of the French Federation of Exporters of Wines and Spirits warns that such tariffs would obliterate the market. In Italy, where the US is a key market, wine associations hope for diplomatic interventions to avoid exacerbating the trade conflict.

Spain's wine producers, particularly those exporting Cava, echo similar concerns. As these nations strategize to counter potential tariffs, the broader European wine industry remains apprehensive about the future of their relationship with US buyers.

(With inputs from agencies.)