The EU said Thursday it expects its cherished wine sector to be hit along with most European products as US tariffs kick in this week, but negotiations were ongoing to secure a carve-out.

After the EU and US announced a trade deal on July 27, in which most EU products imported to the US would be subject to a 15% tariff, France, Italy and others have pushed for an exemption for European alcohol and wines.

European wine and spirits look set to face a 15% tariff on entry to the US from next month, EU officials and diplomats have said. Hopes had been raised that the EU and US could agree to “zero-for-zero” tariffs for wine and spirits, after a number of exemptions were carved out to the 15% base rate tariff announced last weekend.