Trump threatens 200% tariff on European wine and Champagne

President Trump issued a threat on Thursday to impose tariffs on wines, Champagnes, and other alcoholic products imported to the U.S. from France and other European countries. This decision came in response to the European Union’s announcement of increased tariffs on American whiskey, raising them to 50%.

In a post on Truth Social, the social media platform owned by the president, Mr. Trump stated that if the EU does not remove the tariffs immediately, the U.S. will implement a 200% tariff on all alcoholic products coming from France and other EU countries. He believes that this move will benefit the wine and champagne businesses in the U.S. The president criticized the EU, calling it one of the most hostile and abusive taxing and tariffing authorities in the world.

The European Commission President, Ursula von der Leyen, expressed disappointment over the EU’s decision to increase tariffs on American whiskey. The countermeasures from the EU, set to take effect on April 1, target various U.S. exports including beef, poultry, bourbon, jeans, and peanut butter. Von der Leyen emphasized that tariffs are detrimental to businesses and consumers, disrupting supply chains and causing economic uncertainty.

The U.S. exported $1.2 billion in wine and related products in 2024, with France and Italy being the top partners for importing wine and Champagne into the U.S. The Distilled Spirits Council, representing the U.S. spirits industry, expressed concern over the EU’s decision and urged both governments to resolve the tariff issue to benefit the industry.

President Trump’s trade policies have been a focal point of his economic agenda, with tariffs imposed on various U.S. trading partners. The recent escalation in tariffs has raised concerns about a possible recession and caused fluctuations in the stock market. Despite the criticisms, the president stands by his economic policies, emphasizing the importance of revenue generation, growth, and job creation.

In light of the ongoing trade war, the president has made adjustments to his tariff plans, including pausing tariffs on imports from Mexico and Canada under the U.S.-Mexico-Canada Agreement. Additionally, exemptions have been granted to certain products, such as providing a one-month exemption to U.S. automakers facing tariffs on vehicle parts imported from Canada, Mexico, and China.

Overall, the trade tensions between the U.S. and its trading partners continue to impact various industries, with the wine and spirits sector caught in the crossfire of retaliatory tariffs. The future of trade relations remains uncertain as both sides navigate the complexities of international commerce.