EU-US Trade Deal: Wine and Spirits Face 15% Tariff, Ireland Concerned About Dual Rates
Dublin, Ireland – The European Commission anticipates that wine and spirits will not be among the initial exemptions from a new 15% tariff on most EU goods exported to the US. This comes after an agreement was reached last weekend between European Commission President Ursula von der Leyen and US President Donald Trump, averting a steeper 30% tariff that was set to take effect.
While the finer details of the trade deal framework are still pending, a White House fact sheet released earlier this week confirmed that pharmaceuticals and semiconductors are included in the agreed 15% rate. The European Commission has, however, expressed its determination to secure further "carve-outs" for various sectors, including wine and spirits, in subsequent negotiations.
"It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the US tomorrow," stated European Commission spokesman Olof Gill. "Therefore, that sector, as with all other economic sectors, will be captured by the 15% ceiling."
Irish Government Pushes for Zero-Tariff Exemptions
Tánaiste and Minister for Foreign Affairs and Trade Simon Harris has been actively engaged with EU Trade Commissioner Maros Šefčovič on the ongoing negotiations. Following their discussion, Mr. Harris emphasized Ireland's goal to achieve "zero for zero tariff" for as many sectors as possible.
"It looks likely that there will be a carve-out or zero-for-zero for med tech, or certainly certain med tech products, but we need to see that detail," Mr. Harris said. Regarding the drinks industry, he added, "The European Union and Ireland are still really working very hard to try and get that to a zero-for-zero carve-out, whether that happens initially in the original framework or requires further negotiation is unclear at this stage, but we're continuing to work our way through that."
Concerns Over Dual Tariff Rates on the Island of Ireland
A critical concern for Ireland is the potential for two different tariff rates to be applied on the island. Mr. Harris held discussions with Northern Ireland First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly to address this issue.
Under a separate agreement between the UK and the US, exports from Northern Ireland to the US are subject to a 10% levy. Mr. Harris has warned that this differentiation could create "huge complexities" for businesses operating across the island.
In response to the upcoming announcement of the 15% tariff, the Government Trade Forum will convene tomorrow at Government Buildings to "map out Ireland’s response." The forum, comprising State agencies, business groups, unions, and senior ministers, will also receive an analysis from the Department of Finance outlining the projected impact of the levy on the Irish economy.