Navigating EU’s 2025 Retaliatory Tariffs on Bourbon and Wine

Executive Summary

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On May 8, 2025 the European Commission announced a proposed “second list” of retaliatory tariffs covering up to €95 billion of U.S. exports. Crucially for alcohol marketers, this list explicitly targets American bourbon/whiskey and wine – roughly €1.3 billion of U.S. alcohol exports (including whiskey, wine and other spirits) may face new levies. These moves are retaliation for U.S. “reciprocal” tariffs (10–25%) on EU goods under the Trump administration. If implemented, these tariffs will apply as early as mid-summer 2025 (after a 90-day pause on July 8) unless a deal is struck.

This development will have complex effects on brand positioning, market dynamics, supply chains, and B2B relations on both sides of the Atlantic. As marketing leaders, the priority is to understand these shifts and adapt strategy accordingly. Key issues include protecting brand equity in Europe, reassessing pricing and distribution, refining campaign messaging, and engaging in trade advocacy. This report offers an in-depth analysis and practical recommendations – from immediate summer 2025 campaign tactics to longer-term trade and branding strategy – all framed through the lens of C-suite brand leadership.

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Trade Context: EU Tariffs and Scope

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The tariffs proposal is part of a broader U.S.–EU trade dispute. The United States has imposed 25% duties on EU steel/aluminum and 10%–25% on cars and many other goods; the EU had initially proposed €21 billion of counter-tariffs (including grains and machinery) but suspended them in April during negotiations. Now the EU has published a much larger list of U.S. targets (approx. €95 billion in imports) subject to 25% tariffs, pending member-state approval. Notably, this new list includes U.S. wine, bourbon and other spirits, whereas earlier rounds (and urgent lobbying by France, Italy, and Ireland) had removed American whiskey/bourbon from EU tariff lists.

• Covered Products: Wine, distilled spirits (with bourbon highlighted), and other alcoholic beverages are explicitly on the table. The proposed scope is roughly €1.3 billion in U.S. alcohol exports, alongside many other sectors.
  
  
• Tariff Rates & Timeline: EU officials have not set final duty rates yet, but a 25% levy is the likely ballpark, mirroring U.S. steel/aluminum tariffs. The measures are subject to public consultation (until June 10, 2025) and final EU approval by late June/early July. Tariffs would kick in if the U.S. maintains its current high tariffs past July 8, 2025.
  
  
• Trade Dynamics: U.S. spirits groups note that transatlantic spirits trade has been tariff-free since 1997 and are urging a negotiated solution. Both sides claim they prefer diplomacy, but also insist on readiness for “all possibilities”.
  
  

For marketing leaders, the immediate implication is clear: U.S. bourbon and wine exports to Europe (and possibly re-exports to the U.S. market) will face steep new costs unless exempted. Given the EU’s large whiskey/spirits market share (American whiskey exports to the EU surged nearly 60% to ~$699 million in 2024) and the cultural importance of wine, this is a major market disruption.

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Impact on Bourbon and Whiskey Brands

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Market Positioning: American bourbon is a premium spirits segment in Europe, but price-sensitive. A 25% tariff would sharply increase retail and on-premise prices in EU countries. Consumers may substitute toward local spirits (e.g. Scotch, Irish whiskey, or non-U.S. bourbons) or other categories if American bourbon becomes substantially costlier. Marketing leaders should emphasize quality, tradition, and unique flavor profiles to justify higher prices. Campaigns in Europe can highlight brand heritage and craftsmanship (“lifetime barrelling tradition”, etc.) to maintain loyalty. Avoid overtly political messaging; instead celebrate shared values (e.g. “American craftsmanship enjoyed by European connoisseurs”) to keep the brand narrative positive.

Supply Chain & Distribution: Tariffs may lead U.S. producers to accelerate or re-route shipments to minimize impact. Strategize with distributors to build inventory now (pre-tariff) and negotiate pricing/terms. Explore partial bottling in Europe or duty-minimization tactics if feasible. On the ground in Europe, work with wholesalers and bars to adjust shelf pricing and promotions – for example, absorb some costs via targeted promotions or loyalty programs to offset sticker shock. Ensure that logistics contracts account for potential delays or changes due to custom checks.

Brand Strategy: In the short term (summer 2025), marketing campaigns in Europe should avoid any nationalism or trade-war rhetoric. Instead, lean into authenticity and experience: emphasize tasting notes, food pairings, and cultural connection (e.g. U.S.–EU festivals or patron events). If price increases become unavoidable, frame them as enhancements (“limited reserve editions, small-batch selection”) to rationalize higher costs. On the U.S. side, domestic marketing might pivot to themes of national pride and support for American distillers, but carefully: gratuitous “us vs. them” appeals risk boomeranging and should focus on celebrating U.S. product excellence.

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Impact on U.S. Wine Producers

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Market Effects: U.S. wine exports to Europe are smaller than spirits, but still significant for some producers (especially New World varietals). European consumers may shift back toward Old World wines if American wine is tariffed. U.S. wineries should prepare for reduced demand or increased competition. They may need to expand marketing in non-European markets (Asia, Latin America, or domestic travel retail) to compensate.

Messaging and Positioning: Emphasize unique American wine offerings (e.g. Napa Cabernet, Oregon Pinot). Highlight aspects like New World innovation or sustainability to differentiate from European peers. Messaging in Europe should focus on wine quality and lifestyle, sidestepping political angles. Consider participating in international wine events or digital tastings to reinforce presence. U.S. wineries may also push narrative around being allies of Europe in other ways (tourism recovery, etc.) to soften any protectionist sentiment.

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Short-Term Adaptations (Summer 2025)

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Marketing leaders must act now for the 2025 campaign season:

• Campaign Messaging: Recalibrate summer promotions. If tariffs hit by July, preempt price hikes by running early-season “pre-tariff” offers in June. In messaging, highlight heritage stories, limited editions, or special cocktails featuring bourbon/whiskey and wine, to maintain consumer interest despite higher prices. Use digital campaigns to quickly explain product value and counter any negative buzz. For example, pivot advertising to emphasize what’s new or what makes your product worth it in spite of economic headwinds.
  
  
• Sales & Distribution: Collaborate closely with EU distributors and retailers. Inform them of possible upcoming price increases; jointly plan sales forecasts under both “with tariff” and “without tariff” scenarios. Adjust order timing: expediting shipments before July 8 could lock in lower costs. Ensure pricing contracts have flexibility. In on-premise channels (bars/restaurants), consider special deals or pours to keep products on menus.
  
  
• Pricing Strategy: Decide whether to absorb all, part, or none of the tariff. Some brands may choose to protect market share by lowering margins (keeping shelf price flat initially). Others may pass costs directly to consumers while reinforcing premium branding. Evaluate product mix: perhaps focus short-term on higher-end lines where customers are less price-sensitive, while discounting or pausing lesser-margin products.
  

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Long-Term Strategy and Trade Positioning

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Marketing plans should also consider the mid- to long-term trade outlook:

• Diplomacy and Advocacy: Engage with trade associations (e.g. Distilled Spirits Council, U.S. Wine Institute) and government bodies. Submit formal feedback in the EU consultation by June 10 to argue for exclusion of your products. Highlight data showing how a tariff could backfire (e.g. European distillers’ revenues, consumer choice). Lobby U.S. trade negotiators to press for “zero-for-zero” (no tariffs on either side’s spirits/wines). Collaboration with allied EU producers may also help show mutual benefit of tariff relief.
  
  
• Market Diversification: Use this trade disruption as an impetus to diversify. Expand distribution to other free-trade regions (ASEAN, Africa) or deepen domestic U.S. sales channels. Invest in emerging markets where U.S. alcohol is growing. For Europe, consider localizing some production or partnerships (e.g. aging bourbon in EU or producing wines with U.S.-EU joint ventures) to circumvent tariffs.
  
  
• Brand Equity & E-E-A-T: Double down on brand storytelling that builds trust (experience, expertise, authoritativeness, trustworthiness). Publish transparent content about your supply chain, quality processes, or sustainability efforts to boost credibility. E.g., highlight how your whiskey makers use traditional techniques or how your winegrowers maintain strict standards. Use thought leadership pieces (blogs, social media) on the trade issue to position your brand as informed and community-minded – without resorting to automation or hype.
  

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Supply Chain and B2B Communications

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In this volatile environment, close coordination with business partners is essential:

• Supply Chain Resilience: Audit your supply chain for vulnerabilities. With potential export controls on U.S. steel scrap noted by EU (indicating more broad trade frictions), plan for shipping delays or cost rises. Maintain safety stocks in key markets. Re-negotiate contracts with freight and logistics providers for flexibility. Consider hedging currency if tariffs trigger price swings.
  
  
• Distributor & Retailer Relations: Keep all partners informed. Provide clear guidance and sales materials about the tariff changes. Frame communications positively (“working together through tariffs”) and include action plans. Train sales teams on updated pricing logic and handle objections with prepared messaging. Work with distributors to optimize inventory (e.g., expedite popular lines now). At trade shows or B2B meetings, reassure partners that your brand is strategically managing the risk.
  
  

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Pricing and Promotional Adjustments

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• Tiered Pricing: Create multiple price tiers or bundled offerings so customers can trade down if needed. For example, introduce 70cl bottles alongside 1L bottles, or single-malt vs. blended variants, to offer entry points under tariff pressure.
  
  
• Promotional Budget: Anticipate using more of your marketing budget for promotions and trade incentives in Europe. Short-term discounting or added value (e.g. gift packs) can maintain volume. Use digital coupons or loyalty programs to target price-sensitive consumers. However, communicate the value proposition clearly to avoid “promotion fatigue”.
  

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Messaging and Brand Tone

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• Consumer Relations: Communicate transparently but positively. If prices rise, don’t blame the other country or get political; instead, explain it as a temporary challenge and emphasize quality and community. For example, a brand newsletter could highlight how each purchase still supports small distillers/winemakers. Use storytelling (videos from the distillery, winemaker Q&As) to engage consumers on an emotional level, reinforcing brand affinity beyond price.
  
  
• **Avoid Keyword-Stuffing or Jargon: Your campaigns should never devolve into empty slogans. Instead of generic tags (“Trade Tensions Hurt Us All”), use concrete, people-first language: e.g. “We’re honored to share our craft around the world, and we promise to stand by our community in every glass.”
  

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Lobbying and Industry Advocacy

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• Regulatory Engagement: The EU Commission is actively consulting industries until June 10. Coordinate with trade associations to submit data-driven feedback on how tariffs harm both U.S. and EU players. If possible, propose mutual tariff suspensions on wine and spirits (“zero-for-zero”). Engage U.S. officials (USTR, Commerce Department) to press EU to narrow the list.
  
  
• Public Relations: Proactively engage media and policymakers. Develop a factsheet or press release on your brand’s economic impact in Europe and the U.S. (jobs, taxes). Emphasize shared interests – for instance, that European consumers and American producers each have everything to lose from higher alcohol tariffs. Work with trade journals (like Hicork, Wine Spectator) to place op-eds explaining your position in a humanized way.
  

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Long-Term Brand Positioning

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• Consumer Perceptions: Over the long haul, ensure your brand is not seen as collateral damage in a trade war. Emphasize that your product will be available and worth the price even if tariffs stay. Build brand loyalty by investing in customer experiences (tastings, tours, virtual events) that transcend politics.
  
  
• Diversification: As a hedge, consider adapting one product variant (e.g. a special “EU edition” label) that could be produced or bottled in Europe to avoid tariffs, if feasible. Alternatively, highlight aging and bottling in the U.S. to justify the origin premium to consumers.
  
  
• Trade Strategy: Keep monitoring the trade negotiations. If a US-EU deal is reached (e.g. as early as July 2025) and tariffs are lifted, quickly reorient your strategy to recapture any lost momentum. If disputes continue, maintain diversified markets and supply options.
  

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Strategic Checklist for CMOs and Brand Leaders

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• Market & Scenario Planning: Model financial impact under both tariff and tariff-free scenarios. Adjust budgets and sales targets accordingly.
  
  
• Distributor Alignment: Immediately confer with European importers and on-trade partners. Share forecasts and agree on response plans (stocking, pricing).
  
  
• Comment on EU Consultation: Participate in the EU’s public consultation by June 10 to argue for your category’s exclusion. Supply credible data (export volumes, job support) in official submissions.
  
  
• Engage Industry Associations: Strengthen collaboration with bodies like DISCUS, Wine Institute, SpiritsEUROPE to coordinate lobbying and messaging. Leverage their expertise and networks for a unified voice.
  
  
• Campaign Adaptation: Revise summer campaign assets to align with new market realities. Avoid political soundbites; focus on human, quality-driven stories.
  
  
• Pricing Strategy: Determine how much of the tariff to absorb vs. pass on. Plan promotions (e.g. summer specials) to smooth the transition for consumers.
  
  
• Supply-Chain Resilience: Expedite shipments (as permitted by negotiations) and secure warehousing in Europe. Consider alternate routes if bans on certain exports (e.g. scrap steel) foreshadow wider restrictions.
  
  
• Consumer & Channel Research: Monitor sentiment via social listening and trade feedback. Quickly adapt messaging if backlash grows.
  
  
• Alternative Markets: Accelerate growth plans in non-European markets (Asia, Latin America, Middle East) to offset any European downturn.
  
  
• Communication Strategy: Maintain open, empathetic communication with customers. Use newsletters, social media, and retailer education to explain how you’re managing the situation and maintaining quality.
  
  

By proactively addressing these areas, CMOs and brand leaders can navigate the trade turmoil and protect their brands’ positions. The goal is to emerge from this challenge with brand equity intact and a clear roadmap, rather than reacting at each turn.