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EU and US Seal Trade Framework With 15% Tariff and Unresolved Alcohol Exemptions

Taking effect next month, the pact hinges on formal ratification of duty-free spirits against a backdrop of ongoing wine carve-out negotiations

An employee walks past oak barrels at the Tonnelleries Vicard cooperage in Cognac, France, April 3, 2025. REUTERS/Stephane Mahe/File Photo
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Overview

  • Under the framework, a 15% baseline tariff will apply to most EU goods from next month with zero-duty spirits trade awaiting final sign-off.
  • White House officials have downplayed further exemptions beyond aviation, leaving wines and champagne facing the 15% levy unless carve-outs are agreed.
  • French officials including Eric Lombard and Laurent Saint-Martin are intensifying diplomatic efforts in Washington and Brussels to secure exemptions for champagne, cognac and select wines.
  • Trade bodies such as the Comité Européen des Entreprises Vins and the U.S. Distilled Spirits Council are pushing for a reciprocal zero-for-zero tariff arrangement to preserve bilateral alcohol markets.
  • The Wine & Spirits Wholesalers Association warns that a 15% hike in wine duties could eliminate 17,000 American jobs and cost U.S. businesses over $2.5 billion annually.