President Donald Trump is threatening to impose a 200% tariff on European wines, champagnes and other alcoholic products in response to the European Union’s planned 50% levy on American whiskey. This escalation follows the EU’s retaliatory measures against the U.S.’ recent 25% tariffs on steel and aluminum imports.
On Thursday morning, Trump posted on Truth Social, proclaiming: “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky.”
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.” he added.
The escalating trade tensions have already impacted financial markets, with European shares reversing gains amid fears of a broader trade war. Companies in the European spirits sector, such as Diageo, LVMH, Campari Group and Pernod Ricard, have experienced stock declines following the announcement.
The Hill has additional details:
A trade war with Europe was escalated on Wednesday when Trump’s 25 percent tariffs on steel and aluminum took effect, leading the EU to swiftly retaliate with a two-step approach.
The European trading bloc, which is made up of 27 nations, said it will allow the suspension of the existing 2018 and 2020 countermeasures against the U.S. to expire April 1. That would allow for 50 percent tariffs on American whiskey, which were suspended, to automatically go into effect.
Second, the commission is proposing a new package of countermeasures on goods coming from the U.S. that will go into effect in mid-April, covering some $28 billion in imports in total.
The CEO of the Distilled Spirits Council of the United States, Chris Swonger, on Wednesday warned that a European whiskey tariff would be “very, very devastating.”
European Commission President Ursula von der Leyen has emphasized the mutual benefits of U.S.-EU trade, countering Trump’s claims of exploitation by the EU.
The situation remains fluid, with potential implications for both economies if the tariff dispute continues to escalate.
READ NEXT: War Cry For The Innocent! GOP Senator Fights Back Against Biden’s Child Policy Failures!
