European wines and spirits will face a 15% U.S. tariff starting August 1.

Jin10 Data reported on July 31 that EU officials and diplomats stated that starting from August 1, European wines and spirits entering the United States will face a 15% tariff until a new protocol is reached through negotiations, which are expected to continue in the fall. Currently, the tariff imposed by the U.S. on European wines and spirits is 10%. The EU hopes to reduce this rate to zero, or at least adopt the Most-Favored-Nation (MFN) rate for wine, which is calculated based on a fixed amount per liter rather than a percentage. When asked about the tariffs that EU wine and spirit producers will face starting August 1 if a new protocol is not reached, an EU official responded, “15%.” A senior diplomat indicated, “(The relevant negotiations) may take place in the fall. My understanding is that they will impose a fixed tax rate of 15%, but the situation for spirits is less clear, as there was an old protocol that may still be in effect, applicable to zero tariffs or MFN tariffs.”