Tariff-Free Spirits Trade: Why the Industry Urges Swift Action

US–EU trade negotiations restart today, and the global drinks sector sees the moment as critical. Industry groups argue that only a return to tariff-free spirits trade can restore the stability both markets desperately need.

Tariff-Free Spirits Trade and the Summer Deal Gap

When Washington and Brussels struck a trade agreement this summer, wine and spirits didn’t make the first wave of tariff exemptions. Because of that gap, EU exporters must now pay a 15% tariff on wine and spirits entering the US.

Meanwhile, the EU suspended its retaliatory tariffs on American spirits until 5 February 2026, creating an uneven dynamic across the Atlantic.

Today, US Commerce Secretary Howard Lutnick and US trade representative Jamieson Greer meet with EU trade ministers to decide how both parties move forward.

SpiritsEurope Pushes for Predictability in Tariff-Free Spirits Trade

SpiritsEurope wants negotiators to revisit the commitments made in the joint US–EU statement from August. The document highlighted a shared intention to restore “most-favoured nation” tariffs for key sectors.

In comments to The Spirits Business, Mark Titterington, director general of SpiritsEurope, described this language as “a vital signal of political will.” He emphasized that the spirits and hospitality sectors on both sides of the Atlantic need negotiators to follow through quickly.

Titterington added that the industry urgently requires “timely, concrete results to restore balance and predictability in transatlantic trade.”

Economic Pressures Underscore the Need for Tariff-Free Spirits Trade

The consequences already show up in company forecasts and labor projections.
In August, Campari Group—owner of Aperol—estimated that tariffs could cost the company as much as €45 million (US$51m), according to its second-quarter earnings presentation.

A separate study released that same month warned that the 15% tariff on EU wine and spirits could eliminate nearly 60,000 jobs and raise prices for US-made products. That double hit affects producers, importers, retailers, and hospitality operators.

Titterington told The Spirits Business that “a full return to tariff-free transatlantic spirits trade is within reach.” He called on both sides to honor the summer agreement and use today’s meetings as “a springboard toward completing this work swiftly.”

Discus Supports Momentum Toward Tariff-Free Spirits Trade

The Distilled Spirits Council of the United States (Discus) views today’s talks with cautious optimism.
Chris Swonger, president and CEO of Discus, told The Spirits Business that the meetings show “both governments’ commitment to work together to finalise a fair trade framework.”

He explained that permanent zero-for-zero tariffs would strengthen US hospitality businesses and reduce cost pressures for consumers, especially since many spirits “can only be produced in their country of origin.”

Swonger also noted the timing matters: “At a time when affordability is top of mind—especially during the holiday season—removing the 15% tariff on EU spirits would bring welcome relief to US consumers and support US restaurants, bars and retailers.”

What Comes Next for Tariff-Free Spirits Trade?

Both sides claim they want progress. Both recognize the economic stakes. And both understand that prolonged tariffs weaken supply chains, job markets, and consumer spending.

The path forward remains simple: renew tariff-free spirits trade, rebuild stability, and give producers and consumers in both regions a fair, predictable trading environment.

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Source of Information

The Spirits Business Article — Tariff-free trading crucial to restore ‘balance and predictability’, written by Melita Kiely

The image of the article is courtesy of ©zimmytws via Canva.com