President Trump has recently imposed tariffs of between 10% and 20% on wines from Europe and other countries. These tariffs are now set to be reduced for 90 days, benefiting 75 countries (according to Trump).
On April 9, Trump posted on his platform Truth Social:
"(...) I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
This means that baseline tariffs of 10% will remain in effect. And, as clarified by the White House, tariffs on Canada and Mexico remain unchanged, including exemptions under the U.S.-Mexico-Canada Agreement (USMCA). Meanwhile, the tariff on Chinese goods will be raised to 125%, plus an additional 20% that had previously been imposed due to China’s role in the production of the drug fentanyl — effective immediately. (Earlier figures released by the White House did not account for this additional 20%.)
Most of the trade conflict is therefore being temporarily suspended. U.S. Treasury Secretary Scott Bessent explained that the tariff pause is intended to create space for negotiations.
At the same time, the European Commission has just approved retaliatory measures in response to U.S. tariffs on European steel and aluminum. “That’s bad timing for them, that’s bad timing,” Trump reportedly said in the Oval Office, according to The New York Times. In the meantime, the EU has also suspended the tariffs it had announced. All signs now point to negotiations.
The broader impact of this ongoing back-and-forth on global trade is likely to remain challenging. The wine sector needs stability and predictability, especially given long shipping times. Consumer confidence is also unlikely to see a meaningful boost, as previous fluctuations in trade relations, such as those with Canada, have already demonstrated. Or, as Diane Swonk, Chief Economist at KPMG, told The New York Times: “Damage done. (...) Uncertainty is its own tax on the economy.”
Still, there was at least one positive response: U.S. stock markets reacted with significant gains following the announcement. “The trade war may not be over, but at least for today, investors have won the battle,” said Michael Arone, Chief Investment Strategist at State Street Global Advisors to the New York Times.
So while today's developments may offer temporary relief, the issue is far from resolved — and will likely continue to shape the wine industry’s outlook for some time to come.
What does this mean for the wine industry?
Meininger’s asked producers and institutions how the sector should respond to the current situation. Here are some of the first insights:
Miguel A. Torres,
President of Familia Torres
How do you think winemakers should react?
Right now, I believe that in the very short term, we should adopt a “wait and see” approach and avoid making any drastic decisions. As time progresses, if the tariffs remain in place, resources will need to be redirected to alternative markets. That said, there’s no one-size-fits-all answer — much depends on the level of exposure or dependence each producer has on the U.S. market.
Which countries do you think could become the focus of attention as a result?
European producers might shift their attention to markets like Canada, where U.S. wines are currently banned, or to emerging wine markets such as China. European countries themselves will also come under renewed focus.
What should happen next?
The wisest course of action would be to seek negotiation with the U.S. government in hopes of reaching a mutually beneficial agreement. I don’t believe EU countries should respond by raising tariffs on American products in return — doing so would only escalate the conflict and lead to a lose–lose scenario.
Albrecht Ehses,
Head of the Wine Industry, Trier Chamber of Industry and Commerce (IHK Trier)
What impact will the U.S. tariffs have on export opportunities in Germany?
The additional 20% tariffs on EU goods, including wine, will inevitably place a significant burden on affected exporters and their U.S. importers. The necessary price adjustments are likely to reduce demand for German wines and weaken the competitiveness of German wine producers in the U.S. market. I see Riesling producers from the Mosel and other key growing regions — for whom the U.S. has long been a critical export destination — as being especially hard hit.
What can Germany do?
Germany should focus on reducing tariffs through negotiations with the United States — where reliability and predictability are essential. In parallel, expanding and simplifying support programmes for exploring new markets — such as the Promotion Programme for Sales in Third Country Markets — could offer crucial relief.
What would you like to see from the EU?
The EU must set a unified framework to enhance the competitiveness and innovative strength of the European wine industry. The current draft of the EU Commission’s wine package offers several promising starting points.
At the same time, intra-EU deliveries need to be simplified — from harmonising labelling rules across member states to easing regulations for mail-order sales of excise goods like wine and sparkling wine. Just as importantly, the EU should expedite free trade negotiations to ease access to high-potential markets in South America and Asia.
