German wine exporters hope for moderate US tariffs

German winemakers are anxiously awaiting a decision on tariffs from the United States and are predicting major negative consequences for the international wine markets if the trade barriers take effect as planned.

"If the threatened US punitive tariffs come into full effect after the end of the moratorium, it would cause disruptions in international wine markets," said the German Wine Institute (DWI) in Bodenheim.

The US is the most important export market for German wines.

Following a March tariff announcement, wine exports to the US initially came to a complete halt. In recent weeks, exporters have used the period of reduced tariffs to ship as much wine as possible across the Atlantic.

"However, due to limited storage capacities, this was only possible to a limited extent," said DWI spokesman Ernst Büscher.

Tariffs make German wines much more expensive

The tariffs would make German wines considerably more expensive in the US, Büscher explained. This would give wines produced domestically in the US or from countries not subject to punitive tariffs a clear competitive advantage, he noted.

The punitive 25% tariffs introduced during Donald Trump's first term as president in October 2019 resulted in revenue losses of more than 20% for German wine exporters, Büscher reported.

One-sixth of export revenue comes from the US

In the 12 months leading up to March 2025, 12.8 million litres of wine were exported to the US, generating approximately €61 million ($71 million). This accounts for about one-sixth of the total export revenue of €380 million.

In terms of volume, US exports represent 11% of the total wine export volume of 118 million litres. The average price of wine exports to the US during this period was €4.78 per litre, significantly higher than the overall average export price of €3.24 per litre.

Wine exporters seek alternative markets

German exporters are also exploring alternative markets. With the global trend towards increased white wine consumption, Germany is well-positioned, with 69% of its vineyards dedicated to white grape varieties. "However, it usually takes several years to establish good relationships with importers, retailers or restaurateurs in a new market," Büscher noted.

The European Commission has been negotiating with Washington over the tariff dispute for some time, but the outcome remains uncertain. US President Donald Trump announced he would send a letter to the EU regarding tariffs.

On Monday, he released more than a dozen letters outlining tariff demands to various countries, primarily in Asia, and postponed the introduction of new import tariffs by about three weeks to August 1. This gives the European Union more time to negotiate an alternative solution with the US government.