LUSA 08/22/2025

Lusa - Business News - Portugal: 15% wine tariffs 'better than nothing' - Alentejo growers

Évora, Portugal, Aug, 21, 2025 (Lusa) - The president of the Alentejo Regional Winegrowing Commission (CVRA), Luís Sequeira, said on Thursday that the 15% tariffs that will apply to the export of wine products from the European Union to the United States are negative, but welcomed the end of uncertainty.

Speaking to the Lusa news agency, he said that the conclusion of negotiations with the definition of this 15% puts an end to the uncertainty that has existed in the market in recent times and has harmed the sector.

"This conclusion of the process has two readings. The first is necessarily negative because, of course, we were all waiting, still with some hope, for the possibility of zero taxes on entry to the United States," he said.

And the other reading is that, despite everything, [the agreement] can be seen as a lesser evil," he argued, arguing that "at least now" the sector has "some certainty and a number" that "any operator will be aware of and can incorporate into their strategies".

"Until now, what existed was very significant uncertainty, and uncertainty is the enemy of any business," emphasised the CVRA president.

The European Commission failed to obtain a customs exemption for wine products in the agreement it reached with the US, which Italy and France in particular had demanded.

"Unfortunately, we didn't succeed," the Commissioner for Trade and Economic Security, Maroš Šefčovič, said today at a press conference in Brussels (Belgium), the city that hosts the main institutions of the European Union (EU).

The exemption from tariffs for exports of wine products was demanded in particular by Italy and France, but is not included in the details of the agreement between the European Union and Washington, presented today.

Like most EU products, wine will face a 15% tariff increase to enter the US market.

Contacted by Lusa on the subject, the president of CVRA pointed out that, for the national market, the USA is one of the most important markets, along with France.

In the case of Alentejo wines, the USA is "the fourth most important market" for exports, which is why "it is also very important in the region, not only in terms of volume, but also in terms of the average price".

In this specific case of tariffs, he insisted that "it was very important [to have] a concrete idea" of the amount that would be applied, which is now known: "We would have liked zero, but we have 15% and so now we can design our strategies accordingly."

The uncertainty of recent times surrounding customs tariffs has already left its mark on the Alentejo wine sector, according to Luís Sequeira, because "in the first half [of this year] sales plummeted to the United States".

"In the past, the anticipation of the application of the tariffs perhaps generated a buying movement that was perhaps greater than what would be normal, and now we have not only the reflection of that situation, but also all the uncertainty that we've experienced throughout this year, practically to this day, right? And this has a very visible impact, which is a significant reduction in turnover," he emphasised.

Therefore, "the fact that we now have a decision, and even so the decision was 15%, while bad, is better than what we had in the past, which was total uncertainty," he reiterated.

RRL/ADB // DB.

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