Trump threatens 200% wine tariff if EU does not end whiskey tax
JUST IN: Pres. Trump on Thursday threatened a 200% tariff on champagne and other alcohol products from the European Union, escalating a global trade war that has roiled markets and stoked recession fears.
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President Donald Trump on Thursday threatened to impose a massive tariff on European alcohol in response to the European Union’s retaliation against his steel and aluminum tariffs – a tit-for-tat escalation of a trade war that could easily get out of hand.
In a post on Truth Social, Trump said his administration would impose a 200% tariff on alcoholic beverages from the EU unless it rescinds the 50% tariff the European government imposed Wednesday on US whiskey.
“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,” Trump said. “This will be great for the Wine and Champagne businesses in the U.S.”
America’s response to Europe’s response to America’s tariffs in the span of 36 hours shows how trade wars can quickly spiral out of control. After Trump’s 25% tariffs on aluminum and steel went into effect at midnight Wednesday morning, the EU immediately responded to what it called “unjustified” trade action.
The EU’s countermeasures included tariffs on €26 billion ($28 billion) worth of American goods, including tariffs on boats, bourbon and motorbikes. The measures, which are set to go into effect in April, are “swift and proportionate,” it said in a statement.
America’s spirits industry said Wednesday it was bracing for pain from the retaliatory tariffs.
The EU’s 50% tariffs on American spirits are “deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,” Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), said in a statement released Wednesday.
Trump said Wednesday in the Oval Office that he would respond to the EU’s retaliatory tariffs.
“Of course I will respond,” Trump said.
On Thursday, Trump called the EU “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.”
He called the retaliatory tariff it imposed on US bourbon “nasty.”
This is a developing story and will be updated.
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