Trump threatens retaliatory 200% tariff on European wine
President Donald Trump issued a stern warning to the European Union on Thursday, threatening a 200% tariff on European wine, Champagne, and spirits in retaliation for the EU’s planned tariff on American whiskey. The escalating trade dispute is expected to impact various industries on both sides of the Atlantic.
The European import tax, a response to U.S. steel and aluminum tariffs, is set to take effect on April 1, just before Trump’s reciprocal tariffs on the EU. In a tweet, Trump vowed to impose the hefty tariff if the EU proceeds with the 50% tax on American whiskey, stating that it would be beneficial for the U.S. wine and champagne businesses.
European Commission President Ursula von der Leyen expressed the EU’s stance against tariffs, emphasizing the negative impact on businesses and consumers. Trump’s trade policies have been marked by daily tariff dramas, causing fluctuations in the stock market and creating uncertainty for consumers.
The threat of tariffs on alcohol products could lead to price increases for consumers, affecting various sectors from vintners to retailers. The ongoing tariff war has already resulted in layoffs in the Kentucky Bourbon sector and increased costs for American spirits due to EU tariffs.
Trump’s latest tariff threats have raised concerns among businesses, including those that have supported him in the past. The French luxury goods company LVMH and Italy-based Campari Group could face repercussions from the proposed tariffs. Despite Trump’s grievances against the EU, European leaders remain steadfast in defending their industries.
As the trade dispute intensifies, the U.S. whiskey industry is urging Trump to negotiate a resolution with the EU to avoid further economic consequences. The impact of tariffs on whiskey exports to the EU has been significant, leading to job losses and challenges for the sector.
In conclusion, the escalating trade war between the U.S. and the EU has wide-ranging implications for businesses and consumers on both sides of the Atlantic. The potential imposition of tariffs on alcohol products underscores the need for diplomatic negotiations to prevent further economic damage.
Originally Published: March 13, 2025 at 8:10 AM MDT
