Irish and European spirits and wine producers are facing fresh challenges as a new 15% US import tariff is set to take effect, following confirmation today from the European Commission and EU diplomats.

Hopes for an immediate exemption were dashed, with further negotiations expected to continue into the autumn.

The move follows a framework trade agreement between Brussels and Washington, reached on Sunday, which outlines a general 15% tariff on most EU imports entering the US.

While certain sectors are anticipated to receive exemptions, wine and spirits will not be included in the first round.

The current US tariff on European wines and spirits stands at 10%.

The European Commission is seeking to eliminate these duties entirely or, in the case of wine, reduce them to Most Favoured Nation (MFN) rates, which are based on a fixed cost per litre rather than a percentage.

“The Commission remains determined to achieve and secure the maximum number of carve-outs including wine and spirits,” said Olof Gill, Commission spokesperson for trade.

“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 will be captured by the 15% ceiling,” he added.

Industry leaders have warned the increased duty, even temporarily, could significantly impact exporters, including Irish producers who rely on transatlantic trade.

“The 15% duty on EU wines, even if applied for some months until the negotiations are closed, would cause significant economic losses not only for EU wine producers but also for US businesses involved throughout the supply chain,” said Ignacio Sanchez Recarte of the CEEV.

US Distilled Spirits Council CEO Chris Swonger echoed calls for urgency: “It is extremely disappointing and utterly exasperating that the US and EU have not yet come to an agreement on spirits... It is critical for our great American distilleries, farmers and hospitality workers across the country that President Trump secure a permanent return to zero-for-zero tariffs on spirits with the European Union.”

An executive order implementing the agreement is expected to be published by the US tomorrow.

*This article was originally published on BusinessPlus.ie.