New U.S. Tariffs Leave European Wine Duties Unchanged at 10%

A new U.S. tariff regime that took effect on July 24 is not changing much for wine from Italy and the rest of the European Union, according to an analysis from the U.S. Wine Trade Alliance, which represents companies involved in the American wine trade.

The group said the new duties are now being applied under Section 301, tied to allegations involving forced labor, rather than under Section 122 of the Trade Act, which had been used for a temporary 10% surcharge linked to trade imbalances. For most imported wines, the shift is largely a replacement of one tariff framework with another, not an added layer of duties on top of what importers were already paying.

For wines arriving from the European Union, including Italy, France and Spain, the alliance said the total tariff burden remains at 10%, including the existing base duty that usually amounts to only a few cents per bottle. In practical terms, that means Italian and other European wines are facing about the same tariff cost as before under the expired Section 122 surcharge.

The picture is different for some other exporting countries. The alliance said wines from Argentina and Canada are now subject to an additional 10% duty under Section 301 on top of their existing base duty, leaving them with a tariff load broadly similar to what they had under Section 122. But Canadian wine also faces a separate risk: the group said it could be hit with another 50% tariff tied to Canada’s boycott of U.S. wines and spirits and other trade disputes.

For exporters such as Australia, Chile, New Zealand, South Africa and Switzerland, the alliance said wine is now subject to an additional 12.5% duty under Section 301 plus the existing base duty. That raises the rate by 2.5 percentage points compared with the expired Section 122 surcharge.

The change matters across the beverage business because imported wine accounts for a large share of U.S. wine sales, and any shift in tariffs can affect pricing, sourcing decisions and margins for importers, wholesalers, retailers and restaurants. The U.S. Wine Trade Alliance has said imported wine represents 60%-70% of the wine business in the United States, making tariff policy a central issue not only for foreign producers but also for American distributors and hospitality operators.

The alliance said more uncertainty lies ahead. It is waiting for the results of separate Section 301 investigations by the Office of the United States Trade Representative into structural overcapacity and production issues. Those findings are expected soon. The group argues that tariffs on wine do not advance U.S. trade policy goals and instead hurt American importers, distributors, retailers, restaurateurs and consumers.

That position reflects a broader concern in the drinks sector that tariffs can raise shelf prices or force businesses to absorb higher costs at a time when many operators are already dealing with slower consumer spending and pressure on margins. For restaurants and wine merchants that rely heavily on European labels, even a stable 10% tariff means continued cost pressure rather than relief.

The alliance said it had hoped wine would receive an exemption at this stage, as European officials had also sought, but described the current outcome as widely expected. In its view, better chances for meaningful exemptions may come after the current investigations are completed and after implementation of the Turnberry agreement, when earlier reciprocal tariff rates are expected to be largely restored and the European Union is expected to return to negotiations in the fall to seek further exemptions for specific product categories.

The group said that broader negotiation could offer the best opening for more favorable treatment for wine and added that wine remains a top priority for the European Union in those talks.

For Italian producers, that leaves a mixed picture. The immediate news is that there is no fresh tariff shock beyond what exporters were already navigating in recent months. But there is also no real improvement yet for one of Italy’s most important overseas markets.

Recent export figures suggest some stabilization after a sharp setback earlier in the year. Italian wine exports to the United States totaled €564.2 million in the first four months of 2026, down 15.4% from the same period in 2025. Even so, that decline marked an improvement from the 35.2% drop recorded at the start of the year.

The tariff situation for wine also fits into a wider pattern for Italian food and drink exports to the United States. Other major products have seen little change under the new measures. Parmigiano Reggiano remains subject to a 15% duty, while Prosciutto di Parma remains at 10%. Despite that burden, Parmigiano Reggiano exports to the United States rose 2.5% in the first five months of the year, according to figures cited by its consortium.

For now, wine traders are left with continuity rather than clarity: European wines are still carrying a 10% tariff into the U.S. market, several competing suppliers face somewhat higher rates, and importers are waiting to see whether upcoming trade findings and fall negotiations produce any room for exemptions.