Potential US Wine Tariffs Could Impact Greek Wine Exports

A significant blow to Greece’s wine production could occur if US President Donald Trump follows through on his threat to impose 200% tariffs on European wines. Industry representatives have expressed concerns about the possibility of such high tariffs, although they believe it is more likely that the tariffs will be capped at 20%-25%, as Trump has announced for other European imports. There is also a possibility that Greek wines might be exempted again, as they were in 2018. However, if increased tariffs are applied to Greek wines this time, exporters could face substantial losses. This is due to two reasons: Greek wine exports to the US account for approximately 20% of the total export value (18 million euros out of 97 million euros), and these exports have been increasing, compensating for losses in EU markets. Furthermore, Greek wines are sold at a premium price in the US compared to within the EU, making the US market crucial for Greek producers. Despite its small percentage of overall production, the US market holds significant importance due to the rapid growth of Greek wine exports there, even as domestic production decreases. The latest data shows that Greece’s wine production remains low, with imports surpassing exports in quantity for the first time. To support the sector, the European Commission recently proposed a ‘wine package’ aimed at addressing various challenges faced by the industry, including social, economic, geopolitical, and environmental issues. While these measures aim to boost competitiveness, an ongoing trade war between the EU and the US over wine tariffs could undermine these efforts.