Spanish Wine Exports to U.S. Drop 7% Amid Tariffs and Currency Pressures

Spanish wine producers are facing renewed challenges in the U.S. market as new American tariff policies come into effect. The United States is the second most important export destination for Spanish wineries, with sales valued at nearly 400 million euros. The issue was discussed at the 40th AECOC Congress on Mass Consumption in Valencia, where industry leaders such as Ricardo Diéguez, general manager of Marqués de Riscal, and José Luis Benítez, general manager of the Spanish Wine Federation (FEV), addressed the impact of these tariffs on the sector.

Spain is a major player in global wine production. The wine industry accounts for 0.9% of the country’s GDP and contributes over 3 billion euros to Spain’s positive agri-food trade balance. According to Benítez, wine and related products are the most exported agri-food items from the European Union, with a total value of 13 billion euros. He emphasized that the sector is fundamentally export-oriented, present in almost 200 countries, and relies heavily on free trade agreements to maintain open and predictable markets.

Marqués de Riscal has a long-standing relationship with the U.S., dating back to 1883. The American market represents about 10% of its sales, making it the company’s second largest after Spain. Diéguez explained that despite current trade tensions, the winery is committed to a long-term strategy focused on brand strength, institutional cooperation, and support for both the FEV and the European Union in defending the sector’s interests. He stressed the importance of acting responsibly and maintaining confidence that the situation will eventually stabilize.

The new tariffs have created uncertainty, but most Spanish wineries have chosen not to pass increased costs directly onto consumers. Instead, they are working closely with importers and adjusting their marketing and promotional efforts to remain competitive. Diéguez said their priority is to support both consumers and distributors, ensuring that political decisions do not harm Spanish wine. Benítez noted that while there was a 7% year-on-year drop in sales to the U.S. through July, the impact has been less severe than initially feared, thanks to the sector’s strong export capacity and adaptability.

Wineries most exposed to the U.S. market are seeking to offset losses by diversifying into other regions, particularly Canada and Latin America, where trade relations are more stable and demand for Spanish wine continues to grow. On the production side, Spanish vineyards are facing a year of reduced harvests due to climate factors, with some regions like Rioja and Rueda seeing volumes drop by 20%. However, the quality of the grapes remains high. Diéguez pointed out that while climate change is reducing yields, it is also enhancing the character and quality of Spanish wines.

The FEV is pushing for progress on trade agreements such as Mercosur and a potential deal with India, which could open new opportunities for European wine exports. Both Diéguez and Benítez agree that while low- and no-alcohol wines are gaining traction and represent a complementary opportunity, they do not see these products replacing traditional wine in the near future.

The sector is also dealing with currency fluctuations. The appreciation of the euro against the dollar is now seen as a greater threat than tariffs themselves, as it reduces export margins and makes Spanish wines less competitive in key markets. Diéguez described this currency shift as his main short-term concern.

Despite these challenges, there are positive signs in the domestic market. Benítez reported that Spanish wine sales at home have been growing for more than a year and a half. Marqués de Riscal continues to invest in both internal operations and international markets, maintaining its commitment to quality and long-term relationships with partners and consumers.

The FEV highlighted that smaller wineries are feeling the effects of U.S. tariffs more acutely than larger producers, who have so far managed to absorb some of the impact. Benítez reiterated that the U.S. remains a crucial market due to significant investments made since 2008. He called for swift ratification of the Mercosur agreement, which would lower tariffs and open up new opportunities in Brazil and other South American countries. Negotiations with India are also ongoing, with hopes that wine and spirits will be included in any future trade deal.

In addition to trade issues, Spanish wineries are exploring ways to modernize and appeal to new consumer trends. While Marqués de Riscal is not currently focused on producing non-alcoholic wines, Diéguez acknowledged that this category is attracting increasing attention both in Spain and internationally. The FEV sees low- and no-alcohol wines as a way to reach new consumer segments without replacing traditional wine.

The broader context for these developments includes a shifting global order, as discussed by Josep Borrell, former EU High Representative for Foreign Affairs, at the AECOC Congress. Borrell described a move from a rules-based system to one defined by power competition, with Europe needing to strengthen its industrial and technological autonomy in response to global shocks and supply chain disruptions.

Meanwhile, other sectors in Spain are also adapting to changing market conditions. Transgourmet Ibérica, for example, is focusing on selective growth and new store openings, aiming to strengthen its position in food service and fresh products.

Spanish wineries remain hopeful that an agreement can be reached with the U.S. to exempt wine from tariffs. In the meantime, they are diversifying their markets and investing in quality to maintain their international presence. The industry is also calling for ratification of trade agreements like Mercosur to help offset losses in the American market and ensure continued growth in other regions.