The wine sector believes that Trump’s tariff “will take the Spanish and European wine from the United States” | Economy | EUROtoday

The Spanish wine sector fears the results that the imposition of a 200% tariff could have for commercialization within the United States, the second vacation spot market of its exports. Its president, Donald Trump, has threatened Thursday with punishing alcoholic merchandise from France and different European international locations, in response to the charges introduced by the European Union to the American bubon. This, in flip, was a retaliation on the 25% price authorised by the US administration to metal and aluminum imports.

“A 200% tariff would clearly and effectively remove Spanish wines and Europeans in general from the entire US market,” defined José Luis Benítez, normal director of the Spanish Wine Federation (FEV). According to their knowledge, the export of wines from Spain to that market reached a complete worth of 390 million euros final 12 months. Not surprisingly, USA is the second nation of vacation spot for standard Spanish wines, and the primary for glowing.

Benítez has requested the European Union to barter with the Trump administration to go away the wine, and different agri -food merchandise, outdoors the industrial struggle for metal and aluminum. “We cannot afford such an important market for Spanish wines to be affected by commercial reprisals that have nothing to do with our product.”

For his half, the Minister of Agriculture, Luis Planas, has warned: “The will is to speak, negotiate and understand each other, but we will not shake our pulse in defense of our producers if measures are imposed.” For Planas, Trump’s announcement is “like others that have been made, who come and go.” “Let’s get into the facts,” he mentioned in order to not advance occasions.

To the north of the Pyrenees, the French Minister Delegate of Foreign Trade, Laurent Saint-Martin, has been extra direct to advance that the nation is “determined to hire.” “We will not yield to the threats and we will always protect our industries,” he mentioned in a message in X. The minister has lamented the “climbing” of the US president in “the commercial war that has decided to trigger.”

Also the European Committee of Vitivinícoles Companies has proven its agency opposition to the inclusion of American wines and different alcoholic drinks within the List of Commonwealth of the European Union to use tariffs to American merchandise. “Wine trade between the EU and the US is essential for the sustainability of the wine sector on both sides of the Atlantic and must be protected and promoted,” he mentioned in a press launch.

In 2023, in accordance with knowledge from the Ministry of Agriculture, exports of Spanish wine to the US reached 313 million, being the second vacation spot market solely exceeded by the German.

Spain exported to that nation a complete of three,609 million in 2024 in agri -food merchandise, of which the wine is the second most vital, solely behind olive oil. However, the US doesn’t rely a lot on wine imports from Spain. Although this nation buys round 6,500 million euros in worldwide wines, solely 5% of the wine come from Spain. On the opposite hand, 31% of olive oil, 33% of the olives and 10% of the pepper that imports the UU has Spanish origin.

For its half, the Spanish employer of spirits has proven “its deep disappointment” by the crossing of encumbrances. “We are tired of seeing how the iconic value of our brands is used as a political weapon in disputes that have nothing to do with our nature,” says Bosco Torremocha, director of Spiritose Spain. This asks to return to the 1997 zero reciprocal settlement, which eradicated tariffs on these drinks. “The US is a market of enormous potential and in continuous growth,” provides Torremocha.

The European employer of the sector, Spirits Europe, determine at 2.9 billion euros the EU shipments to the US in 2024, 5% extra, this being the primary consumption market of those drinks.

Adaptation to sanctions

Fernando López de los Mozos, accomplice answerable for agriculture, nice consumption and retail In Roland Berger, he has warned of the chance of changing Spanish wine within the US for tariffs: “If demand decreases or cheaper competitors appear, Spanish exporters could lose market share in the US.”

López de los Mozos explains that producers should give attention to decreasing the dangers of their provide chain by way of adjustment changes. “Having alternative suppliers is key to protecting profit margins,” he proposed. Likewise, delocalizing a part of manufacturing or diversifying vacation spot markets may also help mitigate the impression of tariffs, since this technique permits to scale back the dependence of the US market. However, the advisor warns that the expansion and historic efficiency of those markets should at all times be considered, to keep away from incurring dangers that have an effect on profitability.

During the primary Trump administration, extra 25% tariffs had been established that affected 113 Spanish merchandise, together with olive oil and wine. However, the measure was compensated by Spanish wine producers who elevated the manufacturing of purple wine higher than 14 levels (which was not topic to the identical tariffs).