The European alcohol sector, which exports a staggering €8 billion worth of products to the US annually, is nursing a severe hangover of disappointment following the new trade deal. Industry leaders are lamenting a major missed opportunity to secure tariff-free access to their most critical market.
The disappointment is palpable across the continent. The French wine exporters federation (FEVS) was “hugely disappointed,” stating the deal will create “major difficulties.” This sentiment is shared by spirits producers in the UK, Ireland, and beyond, who now face the continuation of a 15% tariff that has been hurting their business for months.
The core of the frustration is that the beverage alcohol industry on both sides of the Atlantic was united in its call for a “zero-for-zero” tariff agreement. There was a clear, simple solution on the table that would have benefited producers and consumers in both the EU and the US. Instead, the sector was used as a bargaining chip in a larger dispute about cars.
This missed opportunity means the industry now faces a prolonged period of uncertainty and constrained growth. The €8 billion export figure, which includes €5 billion in wine, is now at risk. For this vital part of Europe’s agricultural and cultural heritage, the new trade deal is not a solution, but a continuation of a costly problem.