News, Wine & Spirits / Mar 14, 2025

How are the Trade War and Tariffs are Effecting the Wine & Spirits Industry?

Kyle Duford

Partner/ECD

The U.S. wine and spirits industry is facing one of its most disruptive challenges yet: a proposed 200% tariff on European alcoholic beverages, including wine and liquor. Announced by the White House in March 2025 as a retaliatory measure against the European Union’s (EU) tariffs on American whiskey, this decision has sent shockwaves through the industry.

At The Brand Leader, we work with both U.S. and European wine and spirits brands, helping them navigate the complexities of branding, strategy, and marketing. In light of these looming tariffs, many of our clients are asking the same question: How will this affect us, and what can we do about it?

How Will These Tariffs Affect Wine & Spirits Brands?

For U.S. brands exporting to Europe, the EU’s 50% tariff on American whiskey — triggered by Trump’s earlier aluminum tariffs — is already causing strain. Now, with the U.S. retaliating, there’s growing fear that the EU may further escalate trade restrictions, making American wines and spirits even less competitive in the European market.

For European brands selling in the U.S., the proposed 200% tariff could be devastating. European wines currently make up a significant portion of the U.S. market, with imports totaling nearly $5 billion in 2024. If these tariffs take effect, prices for European wines and spirits could skyrocket, leading to plummeting sales, disrupted supply chains, and an overall decline in market share.

Meanwhile, U.S. retailers and distributors who rely on European imports will have to navigate higher costs, reduced demand, and potential shifts in consumer behavior as wine lovers seek alternatives.

So, What Can Brands Do?

Rather than reacting with panic, smart brands should focus on proactive strategies — whether that means refining their branding, exploring alternative markets, or doubling down on consumer engagement.

Strategies for U.S. Wine & Spirits Brands Exporting to Europe

1. Diversify Your Market Strategy
   While Europe is a key market, brands should start looking at alternative export destinations such as Asia, Canada, and Latin America, where tariffs may not pose the same roadblocks.
2. Tell a Stronger Brand Story
   European consumers already associate American whiskey with quality and craftsmanship. Now is the time to double down on storytelling that highlights heritage, sustainability, and the uniqueness of your brand to justify premium pricing.
3. Lean Into Local Partnerships
   Teaming up with European distributors, bars, and retailers can help U.S. brands navigate potential trade barriers. Offering exclusive collaborations or limited-edition products can generate buzz and maintain sales momentum.

Strategies for European Wine & Spirits Brands Entering the U.S.

1. Develop a Stronger Direct-to-Consumer (DTC) Model
   With higher tariffs on wholesale imports, European brands should invest in digital marketing and e-commerce strategies to sell directly to American consumers where possible.
2. Create “Americanized” Offerings
   Consider limited releases that cater to U.S. preferences, such as exclusive packaging, branding adjustments, or region-specific marketing campaigns.
3. Partner With Domestic Producers
   European brands should explore co-branding opportunities with American wineries, distilleries, or importers to create hybrid products that bypass some of the direct tariff impact.

Branding & Marketing Tactics to Mitigate the Crisis

Regardless of which side of the Atlantic your brand is on, the right branding and marketing moves can make all the difference:

• Premiumization & Scarcity Marketing
  If your product is about to become more expensive, lean into exclusivity. Position your brand as a high-end, must-have item with a compelling backstory, rather than focusing on affordability.
• Content & Storytelling
  Reinforce the emotional connection consumers have with your brand. Use digital storytelling, video content, and influencer collaborations to keep your audience engaged despite potential price hikes.
• Loyalty Programs & Subscription Models
  For brands selling in the U.S., rewarding repeat customers through exclusive memberships or wine clubs can keep them engaged, even if prices rise.
• Creative Workarounds
  Some brands may explore alternative formats, such as smaller packaging sizes, lower alcohol content (to fall under different tax brackets), or innovative product lines that sidestep tariff restrictions.

While the proposed tariffs pose a serious challenge, they also create an opportunity for brands to rethink their strategies, sharpen their messaging, and build deeper connections with consumers. The brands that will survive — and thrive — are those that can adapt quickly, leverage creative branding solutions, and explore new ways to reach their audience.

At The Brand Leader, we specialize in crafting unforgettable brand experiences, even in the face of uncertainty. Whether you’re a U.S. brand trying to stay relevant in Europe or a European producer navigating the American market, we can help you refine your messaging, strengthen your positioning, and future-proof your brand,

Kyle Duford

Partner/ECD

Kyle is an executive creative director specializing in crafting outstanding advertising and branding for global brands looking to winnable market share. Kyle’s unique blend of advertising, branding, and digital expertise allows him to create and lead some of the foremost brands through his work at The Brand Leader®. Learn more about Kyle, read his other blogs, or buy his newest book, The Brand Book: A Branding Primer.