Cheese, spirits, wine, cars and steel facing U.S. tariffs

European wine and dairy producers are facing growing uncertainty as new U.S. tariffs threaten to disrupt exports to one of their most lucrative markets.

In Germany’s Mosel Valley, home to some of the world’s most renowned Riesling, winemakers like the Loosen family are feeling the pressure. The family has cultivated vineyards on the steep riverbanks for over 200 years, with 80% of their wine exported abroad. “We rely heavily on the U.S. market,” said Thomas Loosen, co-manager of the Dr. Loosen winery. “Any disruption could seriously impact our operations.”

France, another major exporter of wine and cheese, is equally concerned. President Donald Trump’s announcement of new tariffs stunned producers in early April. The United States is the largest export market for Bordeaux wines, and the country’s cheese exports—valued at €350 million in 2024—have doubled over the past 15 years. “It’s difficult to estimate the cost right now,” said Allan Sichel, head of Bordeaux’s wine industry association, “but the impact will be significant.”

In Cognac and Bordeaux, iconic French wine estates like Chateau Smith Haut Lafitte and artisanal producers of cheeses such as Morbier and Comté are bracing for a drop in U.S. sales. Retailers and cheesemongers across France have expressed concern that rising prices could turn American consumers away from European delicacies.

Meanwhile, in Greece, a cooperative of 1,200 livestock breeders in the Peloponnese was preparing to expand into the U.S. market with its feta cheese—an effort now at risk. Although Greece secured an exemption from U.S. tariffs in 2019, the latest 10% blanket tariff on most EU imports threatens that advantage. Feta, which received protected EU trademark status in 2022, has been a cornerstone of Greek culinary exports for millennia.

At the Kalavrita cooperative in southern Greece, workers continue sorting and packaging cheese, uncertain if their U.S. market dreams will be realized.

As Washington sharpens its trade stance, German exporters are especially nervous. On July 4, European markets reacted swiftly, with shares falling nearly 1% over fears that stalled negotiations could result in widespread tariffs on EU goods.

With just days remaining before the July 9 deadline, Europe’s renowned wine and cheese industries face an anxious wait. Many hope diplomacy will prevail—but for now, the future of their access to the U.S. market remains in doubt.

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