U.S. wine demand soars, but Trump’s tariffs could disrupt global wine supply chain

The United States is still the world’s largest wine consumer, with an impressive 33.3 million hectolitres consumed annually.

France follows with 24.4 million, and Italy ranks third at 21.8 million hectolitres. This reflects the lasting cultural and economic role that wine plays in traditional producers and newer markets.

Top 10 Wine-Consuming Countries (in million hectolitres):

USA – 33.3

France – 24.4

Italy – 21.8

Germany – 19.1

UK – 12.8

Spain – 9.8

Russia – 8.6

Argentina – 7.8

China – 6.8

Portugal – 5.5

Trump’s reciprocal tariffs could disrupt wine trade

As part of sweeping trade measures, the U.S. has announced average tariffs of 20% on a range of goods from the European Union, including machinery, vehicles, and wine. This action spells doom for the global trade and sale of wines.

With the U.S. leading global consumption and importing large volumes of European wine, the 20% tariff could sharply raise prices for consumers. Experts predict a shift toward domestic brands and New World wines (e.g., Chile, Australia) as French, Italian, and Spanish wines become less affordable.

Additionally, France, Italy, Spain, and Portugal—all in the top 10 wine-consuming and producing nations—could face significant export losses. For countries like Portugal, which consumed 5.5 million hectolitres but relies heavily on exports, this could destabilise parts of its economy.

Meanwhile, American wine producers might see short-term gains due to reduced competition, yet retaliatory tariffs from the EU could hurt U.S. wine exports, especially to top buyers like Germany and the UK.