U.S.-EU Trade Standoff Threatens Global Wine Industry with Proposed Tariffs

The U.S. considers a 200% tariff on European wines in response to EU's planned 50% tariff on American whiskey, leaving both industries bracing for significant economic fallout.

• President Donald Trump has proposed a 200% tariff on European wine, Champagne, and spirits in retaliation against the EU's planned 50% tariff on American whiskey.
• California's wine industry, already struggling with declining consumption, environmental challenges, and rising costs, fears further disruption from increased production expenses and retaliatory measures.
• European wine producers, particularly in France, Italy, and Spain, warn that the proposed tariffs could devastate exports to the U.S., jeopardizing billions in revenue and thousands of jobs.
• Some California winegrape growers see potential benefits from the tariffs, hoping they could level the playing field with subsidized European competitors, though the broader industry remains concerned.
• The looming tariffs have prompted stockpiling of European wines in the U.S. and increased uncertainty in both markets, highlighting the vulnerability of wine to geopolitical trade disputes.

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