US tariffs shake up the Spanish wine sector: €400 million at risk

 

 

The US President's announcement Donald Trump on the application of a general tariff of 20% to products originating in the European Union has put in alert to the Spanish wine sectorThe importance of the US market for Spanish wineries is undeniable, accounting for 13% of total wine exports. In 2024, 97 million liters of Spanish wine were exported to the United States, equivalent to an approximate value of €390 million.

 

José Luis BenítezThe FEV's CEO expressed his deep concern about this measure, noting that "the tariffs announced by the US are totally unjustified In the specific case of wine, if we consider that the current tariff difference between the rates applied by the EU and the US is minimal." Benítez warned that this decision not only will harm Spanish and European wineries, but also will affect American consumerswho depend heavily on wine imports. Furthermore, it anticipates a scenario of «Economic uncertainty and rising prices in the United States and the EU«.

 

 

The measure, described as "unjustified" by the Spanish Wine Federation (FEV), threatens to destabilize Spanish wineries, especially SMEs, and to negatively impact American consumers.

 

 

A particularly worrying aspect is the impact these tariffs will have on small and medium-sized enterprises (SMEs) in the sector. According to Benítez, these companies, which represent 99% of Spanish wineries, are the most vulnerable to this situation. Their reduced ability to diversify their products exports and their greater dependence on major markets puts them at a disadvantage in dealing with the consequences of this measure.

 

The trade relationship between the wine sectors of the European Union and the United States has been characterized by cooperation and mutual support. The signing of the EU-US Declaration of Principles on Trade in the Wine Sector In 2020, it was a clear example of this collaboration, promoting free and fair trade between both regions.

 

"The US market is fundamental to the economic sustainability of the EU wine sector and There is no alternative wine market right now that can compensate for the loss," the CEO stated emphatically. FEV.

 

Given this situation, the FEV has intensified its communication with the relevant Spanish ministries, awaiting the support measures that the President of the Government, Pedro Sánchez, will announce at a scheduled meeting. The president of the FEV, Peter Ferrer, has also been invited to this meeting.

 

“From the sector, we urge governments to redouble their efforts and exhaust all avenues for a negotiated solution before the announced tariffs come into effect,” Benítez emphasized. He also advocated for “the complete, immediate, and simultaneous elimination of all tariffs on wine in both blocs and the acceleration of the ratification of other agreements, such as the one on…” Mercosur that facilitate market diversification at a crucial time."