BRUSSELS, July 31 (Reuters) - European wine and spirits
will face a 15% tariff when entering the U.S. from Aug 1, until
negotiators agree on a different deal in talks expected to
continue in the autumn, EU officials and diplomats said on
Thursday.
The U.S. tariff on European wine and spirits is now 10%. The
European Union is keen to reduce that to zero, or, for wine at
least, to the Most Favoured Nation (MFN) rates that are set on a
fixed cost per litre basis, rather than in percentage terms.
Asked what tariff EU wine and spirits producers will face
from August 1, unless a different deal is struck, an EU official
close to the negotiations said: "15%."
A senior diplomat close to the talks told Reuters that talks
on wine tariffs would continue after the EU and U.S. finalise
their joint statement on the framework trade deal that was
agreed last Sunday between U.S. President Donald Trump and
European Commission President Ursula von der Leyen.
"(This will take place) probably in the autumn. My
understanding is that they would go at the flat 15% rate. Less
clear on spirits where I know there is an old agreement that
should be still in force for zero, or MFN tariffs," the diplomat
said.
Spirits have benefited from zero tariffs between the United
States and European Union since an agreement in 1997 that also
included other countries such as Canada and Japan.
That lasted until 2018, when the EU response to Trump
steel and aluminium tariffs included increased duties on U.S.
bourbon and other spirits. These were suspended in 2021, during
then-U.S. President Joe Biden's administration.
U.S. MFN rates for wine are 19.8 cents per litre for
sparkling and 6.3 cents per litre for most other wine, which
equates to very low rates in most cases.
The EU has already envisaged a quota system for steel
exports with U.S. MFN rates, which are very low or at zero.