EU drops bourbon, wine and dairy products from tariffs list against US

The EU is set to impose 25 per cent tariffs on a selection of US products in retaliation for American duties on steel and aluminium, though bourbon has been spared following intense lobbying from France, Italy, and Ireland, who are working to protect their domestic alcohol industries from further fallout in the ongoing trade dispute.

Along with bourbon, wine and dairy products have been excluded from the EU’s final list of countermeasures after consultations with member states, according to a document reviewed by the Financial Times.

However, a range of other US goods—including orange juice, poultry, and soyabeans—will face tariffs of between 10 and 25 per cent. Implementation will begin on a staggered timeline, from April 15 through December 1. Some items, such as soyabeans and almonds, won’t be affected until December, following pressure from farmers concerned about animal feed costs.

US President Donald Trump had previously warned that if bourbon were targeted, he’d respond with a 200 per cent tariff on European alcohol.

EU trade commissioner Maroš Šefčovič, speaking ahead of the list being distributed to member governments on Monday, said the commission had taken national concerns into account. The result is a scaled-back response, covering fewer goods than the initial €26bn of US imports that were originally in scope after Washington’s blanket 25 per cent tariffs on steel and aluminium.

“We’re not here to match move for move or dollar for dollar,” Šefčovič said.

EU governments are expected to sign off on the revised list by Wednesday.

Meanwhile, Trump has declared plans for an additional 20 per cent tariff on all European exports.

European Commission president Ursula von der Leyen reiterated that Brussels has consistently offered the US a tariff-free agreement on industrial goods, especially cars, stressing that “Europe is always ready to strike a fair deal, and that offer remains on the table.”

Germany’s economy minister criticized what he saw as self-interested lobbying from fellow EU countries, saying the bloc should present a united front under the commission’s leadership on trade.

“Markets are already reeling, and the damage could escalate,” said Robert Habeck ahead of an EU trade ministers’ meeting in Luxembourg on Monday. “We must act with clarity and unity—and that starts with recognising our strength and America’s vulnerability.”

“If each country defends its own niche—red wine here, whiskey or pistachios there—we’ll achieve nothing,” he added.

Still, Europe’s drinks industry will welcome the revisions if finalized. Many producers are already suffering from Trump’s original tariffs, a sluggish global market, and trade tensions with China.

France’s wine and spirits sector stood to lose the most from the planned duties, according to industry body Fevs, which warned that EU alcohol exports could fall by €1.6bn—half of that from France—impacting jobs and economic output.

“This trade dispute produces only losers, on both sides of the Atlantic,” said Fevs president Gabriel Picard. “Our longstanding US partners are sharing this concern with their own government.”

Italian Prime Minister Giorgia Meloni is expected to travel to Washington “in the coming weeks” as part of a broader EU effort to convince the US to walk back the 20 per cent tariffs, Italy’s foreign minister said Monday.

Antonio Tajani added that Rome’s goal is a mutual “zero tariff-zero tariff” agreement, but as a step toward that, hopes the US might at least reduce its reciprocal tariffs on European goods to 10 per cent.

The US spirits industry has also pushed back against global alcohol tariffs, highlighting that 86 per cent of American exports go to countries that have already eliminated tariffs on US spirits.

“The US spirits sector has long been a model of open, fair trade,” said Chris Swonger, president and CEO of the Distilled Spirits Council, last week.

In 2018, the EU imposed a 25 per cent retaliatory tariff on US whiskey, leading exports to fall by 20 per cent—from $552mn in 2018 to $440mn by 2021.

Following the suspension of those tariffs, US whiskey exports to the EU rebounded nearly 60 per cent, rising from $439mn in 2021 to $699mn in 2024, according to industry data.