Overview

• The U.S. began enforcing a 15% tariff on European wines on August 1 under President Trump’s retaliatory measures, and no wine-specific exemptions have been finalized.
• Some California vintners and restaurateurs have petitioned the administration to carve wine out of the tariffs to shield restaurants and distributors from higher import costs.
• Others advocate for a zero-for-zero deal, pointing out that EU producers benefit from over €1 billion in annual export subsidies while U.S. suppliers face added duties on corks, barrels and glass.
• Distribution partners have reacted to tariff uncertainty by cutting orders of domestic wines, squeezing revenues across the three-tier wholesale system.
• Transatlantic negotiations are ongoing but lack a clear timeline for resolution, leaving export plans and import strategies in limbo for California’s wine sector.