There is growing concern in the wine industry over the proposed tariff increase to 20% that U.S. President Donald Trump intends to impose on products from the European Union. A situation that could severely impact many small Spanish producers while potentially reinforcing the global decline in wine consumption, as noted by industry experts.
Concern in the Wine Sector Over Trump’s 20% Tariffs
In Spain, there is significant concern over the announced tariff hike that Donald Trump plans to apply to products originating from the European Union (EU). If this measure is ultimately implemented—it currently stands at 10%—it could seriously affect the sector’s business volume. It is important to remember that the U.S. is the second-largest consumer of Spanish wine, and the top consumer when it comes to sparkling wines.
To understand the potential impact of this measure, one only needs to look at the figures reported by industry bodies. According to data, Spanish wineries exported an impressive 97 million litres of wine to the U.S. in 2024, generating a business volume of approximately €390 million, as stated by the Spanish Wine Federation (FEV) in a press release.
This means the damage caused by the tariffs could be considerable. Moreover, as highlighted by various U.S. media outlets, Spanish wines are among the most preferred by a large portion of American consumers, who find in Spain’s wide variety of wines the perfect complement to their meals and celebrations.
A clear example of this is the DEMUERTE wine series—a premium selection where all types of consumers can find exactly what they’re looking for.
The FEV has labelled the tariff increase as “unjustified,” noting: “In the specific case of wine, the current difference between EU and U.S. tariff rates is minimal.”
They also warn that the tariff will have a significant impact not only on the Spanish wine industry but also on American consumers: “who consume more wine than they produce, and it will trigger economic uncertainty and price increases in both the U.S. and the EU.”
How and Who Will Be Affected by the Wine Tariffs
The tariffs announced by the U.S. government will not only lead to higher prices, but are also expected to exacerbate the already declining trend in wine consumption. Consumption in the U.S.—a key market for the global wine industry—is expected to keep falling. This could also cause a ripple effect on global wine consumption, which is already in decline.
According to the FEV press release: “The United States recorded a 5.8% drop in consumption, down to 33.3 million hectolitres. In Europe, which accounts for 48% of global sales, consumption fell by 2.8% in 2024. And in France, a country traditionally associated with wine, consumption has been steadily decreasing for decades, falling 3.6% last year.”
Tariffs and Small Wineries
This trade war will also hit domestic wine producers—especially small and medium-sized enterprises (SMEs), which according to the Spanish Wine Federation represent 99% of Spanish wineries. These SMEs: “have less capacity to diversify their exports, are more dependent on their main export markets, and have fewer financial resources to cope with complex situations like this one.”
For all these reasons, at WINERYON we are closely monitoring any developments on this matter. Tariffs are bad news for both wine producers and consumers—especially after years of effort and investment to achieve the internationalisation of our products. We hope the ongoing talks between the European Union and the United States lead to a positive resolution and that we can soon return to normality.
