Yesterday ‘Liberation Day’ in the US was launched, where President Donald Trump unleashed a range of tariff barriers including a baseline of 10% across the world.
Tariffs were targeted towards China (54%), Vietnam (46%) and the EU (20%). The UK has remained at the baseline level of 10%, although it had hoped to escape entirely. Baseline tariffs will be affected from April 5, with higher-level tariffs coming in on April 9.
Food and beverage, of course, has not emerged unscathed. 20% tariffs on EU goods will affect major exports to the US, including wine, beer, spirits, cheese, chocolate, olive oil, and fruit and vegetable preparations.
It may be “the most beautiful word in the dictionary” according to the US’s President, but how will tariffs affect EU food and drink?
The industry responds
Reactions have poured in from across the food industry.
“Europe’s food and drink industry deeply regrets the US’ decision to impose 20% tariffs on imports from the EU, given the impact it will have on transatlantic trade, businesses, and consumers,” said a spokesperson for industry association Food Drink Europe.
“The two-way trade in agri-food raw materials, ingredients, and finished products – valued at €40 billion - underscores the critical importance of this relationship – one that ensures supply chain resilience, supports jobs and rural communities, and meets the diverse consumer needs on both sides of the Atlantic.
“We reiterate our call for the de-escalation of trade tensions and welcome the EU’s desire to reach a negotiated outcome.”
European Liaison Committee for Agricultural and Agri-Food Trade (CELCAA), another EU trade association representing agri-food commodity traders. A spokesperson said that it was “disappointed and saddened” by the imposition of tariffs, which “severely hinders the scope for existing commercial relationships to continue ‘business as usual’ and for new commercial relationships to thrive”.
How will tariffs affect individual sectors?
The Comité Européen des Entreprises Vins (CEEV), the European industry association for wine, has also hit back against the tariffs.
“The announced reciprocal tariffs on EU wines will damage hardly EU wine companies and would create economic uncertainty and result in layoffs, deferred investments and price increases. Targeting EU wine will only make losers on both sides of the Atlantic,” said Marzia Varvaglione, President of the Comité Européen des Entreprises Vins (CEEV).
“The US wine market is fundamental for the economic sustainability of the EU wine sector. There is no alternative wine market that could compensate the loss of the US market.” she added.
The US is one of EU wine’s largest export markets; in 2024, €4.88 billion were shipped to the country, making up 28% of the EU’s total wine exports, according to CEEV.
European beer has been hit particularly hard, included as it is in a list of aluminium canned products given 25% tariffs.
“The US announcement of 20% reciprocal tariffs on all EU products will create losers on both sides, across the society and economy. However, it is the addition of Beer to Annex 1 on aluminium derivative products facing a 25% tariff that is particularly concerning to Europe’s ten thousand breweries,” said a spokesperson for Brewers of Europe.
The association emphasised the lack of clarity of the decision, questioning whether all beer would be affected, or only beer in cans.
Another industry that will be hit hard by tariffs is cheese. The European Dairy Association (EDA) has likewise responded to the tariffs.
“This move is unjustified,” said Alexander Anton, Secretary General of EDA.
“EU dairy exports – most notably cheese – account for less than 2% of total U.S. domestic consumption. These cheeses serve a very unique market segment in the U.S., offering choice and excellence to the U.S. consumers, and therefore do not compete directly with American dairy products.
“This is a blow to rural economies across Europe – and to the spirit of fair and rules-based trade.”
The EU-US trade balance is “basically an equilibrium,” said Anton, and therefore disrupting it is a “lose-lose” situation.
One further sector that will be impacted is olive oil. “The USA is a very important market for our parent company in Italy,” explains Walter Zanre, CEO of major olive oil producer Filippo Berio.
“As the tariffs apply to all olive oil exporting countries, it’s a level playing field. It effectively becomes a 20% increase on raw material costs. Over the last two years we have had a lot of practice in managing increases to raw material costs.”
This will continue to be updated as responses come in …