ROME – The joint statement on tariffs released today by the EU and the United States notably omits the chapter on “wine, spirits, and beer” along with the anticipated zero tariff exemption. The new U.S. tariff regime for the European Union introduces a maximum tariff rate of 15%, affecting wood products and barrels, leading to disappointment among wine companies who see the hoped-for exemption vanish.
Italian producers estimate a financial hit of 317 million euros over the next year, compounded by a weak dollar that worsens the exchange situation. This new regime stipulates that products already facing most favored nation (‘MFN’) tariffs of 15% or more will not incur additional charges. Beginning September 1, various goods, including cork, will only be subject to MFN tariffs under a special regime that the EU plans to broaden to additional product categories.
However, EU Commissioner for Trade Maros Sefcovic remarked, “unfortunately, wine, spirits, and beer could not be included in the sectors that will remain at ‘MFN’ level.” He added that “the doors are not closed forever: as the EU Commission, we will diligently work to expand the sectors” to include these beverages. For Italian winemakers and distillers, this news is a significant setback, coming after six months of uncertainty impacting their overseas sales.
French wine and spirits producers and exporters have also expressed “immense disappointment.” Nonetheless, the prospects for Italian products are not entirely bleak. The Government emphasizes its ongoing commitment, alongside other European nations, to advocate for the agri-food sector’s inclusion in the exempt categories. The Italian Wine Union (Uiv) has estimated the losses, labeling it “a blow.” According to the Uiv Observatory, businesses could face damages of approximately 317 million euros over the next year, while overseas partners might see lost earnings close to 1.7 billion dollars. Should the dollar remain weak, total damages could reach 460 million euros.
Uiv president Lamberto Frescobaldi commented on the challenging second half of the year ahead, expressing hope that negotiations could yield favorable changes. Luigi Scordamaglia, CEO of Filiera Italia, urged continued negotiations, highlighting that the value of Italian wine exports to the United States in 2024 is projected at around 1.9 billion euros, accounting for 24% of total Italian wine exports. Meanwhile, Confagricoltura notes that the U.S. market value for Pecorino Romano cheese stands at 170 million euros. (AUGUST 21)
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