Menorca Awaits the Outcome of EU Talks to Remove US Tariffs on Wine and Cheese

The possible elimination of the 15% tariff could strengthen the competitiveness of Mahón-Menorca cheese and create new opportunities for the island’s wineries in a US market with a strong interest in distinctive gastronomic products

Bep Al·lès/Ciutadella - The negotiations opened between the European Commission and the United States to reduce or eliminate tariffs on certain European products could have a direct impact on two of Menorca’s most representative agri-food sectors: cheese and wine.

Brussels has submitted a list of products to the US administration for which it believes tariff reductions may be possible. The proposal includes wine, spirits, beer, olive oil, olives, medical equipment and certain dairy products and speciality cheeses. Together, the goods included represent European exports worth around €115 billion.

The talks are based on the trade agreement between the European Union and the United States, which imposes a 15% tariff on a large proportion of EU exports. The European Commission believes there is now room to broaden the exemptions and improve access conditions to the US market. Since 1 July 2026, the European Union has already removed duties on US industrial products and facilitated the entry of certain American food products considered non-sensitive.

A particularly important negotiation for the cheese sector

For Menorca’s cheese industry, the outcome could be especially significant. Mahón-Menorca cheese is not only one of the island’s best-known products, but also has an established presence in international markets.

In 2024, the Protected Designation of Origin marketed 2,604 tonnes of cheese, with a value of more than €24.7 million. The product is exported to 44 countries, with the United States among its main destinations, alongside the Dominican Republic, Germany, the United Kingdom and Mexico. The PDO brings together 98 livestock farms, 53 cheese dairies —43 of them artisan producers— and 42 maturing companies. Altogether, they produce more than 3,500 tonnes a year.

A 15% tariff increases the cost of the product when it reaches US distributors, specialist shops and restaurants. This additional cost may be passed on to consumers or partially absorbed by producers and importers, reducing commercial margins.

Removing the tariff would improve the final price of Mahón-Menorca cheese, strengthen its competitiveness against other international cheeses and make it easier for new Menorcan brands to enter the market. It could also benefit small artisan producers, which face greater difficulties in absorbing the logistical, sanitary and administrative costs associated with exports.

However, it remains to be seen which cheeses would be included in the exemption. The European list refers to dairy products and speciality cheeses, but the specific inclusion of Mahón-Menorca has not yet been confirmed.

An opportunity for the island’s wines

The measure could also have positive consequences for Menorca’s wineries. The Vi de la Terra Illa de Menorca Protected Geographical Indication marketed 1,804 hectolitres in 2025, 8.7% more than the previous year, despite a general decline in wine consumption in Spain and across Europe. Menorcan wine production also increased by 27.3%, partly due to newly planted vineyards entering production.

Although these volumes are modest compared with those of major wine-producing regions, Menorcan wines compete in a distinctive market segment linked to their origin, island landscape, limited production and Mediterranean gastronomy.

A reduction in tariffs could make it easier for these wines to enter specialist shops, restaurants and distribution networks in the United States that are interested in unique and lesser-known labels. It would also help diversify sales and reduce dependence on local and tourist consumption, which is heavily concentrated during the summer months.

The agreement, however, would not solve every challenge. Menorcan producers would still face the costs of maritime transport, distribution, health authorisations and commercial promotion. Even so, removing the 15% tariff would represent an important initial advantage for products whose strength lies in value, identity and quality rather than large-scale production.

For Menorca, the negotiations between Brussels and Washington go beyond a trade dispute. They could become an opportunity to strengthen the primary sector, create new outlets for high-quality agri-food products and consolidate the international profile of the island’s cheeses and wines.