The US President announced yesterday that he will impose 200% tariffs on wines, champagnes and other spirits from the European Union.
US President Donald Trump yesterday threatened the European Union (EU) with 200% tariffs on champagne, wine and other spirits if the EU’s 50% tariff on American whiskey (due to come into effect on April 1) is not dropped.
“The European Union, one of the most abusive and hostile tax and tariff authorities in the world, has just imposed a 50% tariff on whiskey. If these tariffs are not immediately removed, the United States will quickly impose a 200% tariff on all wine, champagne and spirits from France and other EU countries,” the US president wrote on the Truth Social network.
The announcement came as a bombshell to the wine sector, with the main national producers calling for Brussels to intervene, given that the US is the second destination for Portuguese wine exports.
DIÁRIO tried to understand what the impact would be on Madeira Wine exports if these measures were to be implemented.
Tiago Freitas, president of IVBAM – Madeira Wine, Embroidery and Crafts Institute, looks at Donald Trump’s statements with “expectation” and “apprehension”.
“Any unilateral increase in a price that has already been negotiated between Madeira Wine producers and importers naturally has two consequences: either it is absorbed by the importer or it is passed on to the end customer,” the person in charge begins by explaining.
The president of IVBAM refuses to talk about “alarm”, highlighting that “the objective is not all European wines, but mainly French wines and, certainly, some champagne”.
Still, he acknowledges that “we have to be attentive to the addition of this component which, naturally, has repercussions on Madeira Wine, the sector and the players”.
Speaking to DIÁRIO, Tiago Freitas recalls that Madeira Wine is “a patriotic wine” and “with a very strong emotional charge in the US market”, as American independence was celebrated with Madeiran liqueur in 1776.
More than enough reasons for the USA to represent “one of the main export markets for Madeira Wine” and the most important outside of Europe.
In descending order, the preferred markets are “Madeira, France, USA, United Kingdom, Japan and Germany”, reveals the president of IVBAM.
But let’s look at the numbers:
According to data released on January 31 by the Regional Statistics Directorate of Madeira (DREM), the sale of Madeira wine exceeded 3.1 million liters in 2024, which translated into first-sale revenues amounting to 20.8 million euros, an increase of 5.2% in quantity, but a decrease of 1.8% in income, compared to 2023.
Most of the sales – “around 5 million euros” – are made in the Autonomous Region of Madeira, indicates Tiago Freitas, specifying that the regional market registered “an increase, compared to 2023, of 15% in value” and that “it also increased in volume by around 10%”.
In terms of exports, “France was the main market last year, with 2 million and 800 thousand euros”.
The USA represented, in 2024, “around 2 million and 600 thousand euros ”. “We are talking about around 210 thousand liters” , reveals Tiago Freitas.
All things considered (based on DREM data), the USA represented 8.5% of the total volume of Madeira Wine exports in 2024 and 17.6% in terms of value.