- European wine sector faces 15% US tariff starting this week amid ongoing talks on exemptions
- France, Italy, and others seek zero tariffs on alcohol including champagne and spirits
- US tariffs represent a rise from an average 4.8% to a flat 15% on most EU exports
The EU said Thursday it expects its cherished wine sector to be hit along with most European products as US tariffs kick in this week, but negotiations were ongoing to secure a carve-out.
Brussels and Washington struck a trade deal at the weekend which will see most EU exports face a 15-percent US levy starting Friday, with a number of exemptions such as aircraft so far locked-in.
France, Italy and other wine making countries were pushing for zero tariffs for alcohol including champagne, wines and spirits among carve-outs in the final deal, but those talks were ongoing.
"It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the US tomorrow, and therefore that sector, as with all other economic sectors, will be captured by the 15 percent ceiling," European Commission spokesman Olof Gill told a press conference.
The commission, which is in charge of trade policy for the 27-nation bloc, was determined to achieve and secure the maximum number of carve-outs, including for wine and spirits, he added.
"We are continuing to negotiate with our US partners," he said.
The United States is the largest export destination for European wines, accounting for 27 percent of all exports in value, according to industry figures.
The 15-percent rate agreed after months of negotiations is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent.
But it mirrors the status quo, with companies facing an additional flat rate of 10 percent imposed by Trump since April.
The "framework" agreement struck on Sunday however only laid out the broad principles of the deal, and many details were still unclear or under negotiation.
Gill said work was ongoing to finalise a joint statement that although still non legally binding should bring some clarity.
"The US has made these commitments. Now it's up to the US to implement them. The ball is in their court," said Gill.
On the US side, the majority of the undertakings in the deal are expected to be carried out by executive order.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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