Donald Trump has threatened to impose 200% tariffs on wine, champagne, and other alcoholic beverages from the European Union, responding to Brussels’ recent move to slap a 50% tariff on American whiskey. The EU’s decision was a retaliation against U.S. tariffs on European steel and aluminum.
The announcement sent shockwaves through financial markets, with shares in leading European wine and spirits producers tumbling. As for Italy, Campari dropped 4.3%, while Italian Wine Brands fell 3.3%. As for France, LVMH—owner of Moët & Chandon—slipped 1%, while Rémy Cointreau, known for its premium cognac, shed 4%.
ITALY’S WINE EXPORTS IN THE TARIFFS FIRING LINE
Should the U.S. press ahead with the tariffs, European wine exporters stand to lose an estimated €4.9bn in sales, with Italy alone facing a €1.9bn hit. The U.S. is a key market for European wine, with Italy ranking second only to France (€2.3bn) in export value but leading globally in volume, shipping 354 million liters. In 2024, Italian wineries sent 24% of all exported bottles to the U.S., up 10% from 2023.