Trump threatens 200% tariffs on EU wine in escalating trade war
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The news: US President Donald Trump has threatened to impose a 200% tariff on wine, champagne, and other alcoholic beverages from the European Union if Brussels does not drop its planned 50% tariff on American whiskey.
The context: The EU’s whiskey tariff—originally imposed in retaliation for Trump’s first-term steel and aluminium tariffs—was suspended under a Biden-era truce set to expire on 1 April.
Unless a new deal is reached, the 50% tariff on American whiskey will automatically take effect as part of a broader €26 billion package of countermeasures targeting US products in response to Trump’s revived metal tariffs.
That includes additional duties on US industrial and agricultural goods, set to roll out by mid-April if approved by EU member states.
Trump announced his threat on social media, calling the EU "one of the most hostile and abusive taxing and tariffing authorities in the world."
The numbers: EU wine exports to the US were worth €4.9 billion ($8.5 billion) last year, accounting for 29% of the bloc’s total wine exports, according to Eurostat data cited by Reuters. France made up nearly half, and Italy almost 40%.
European spirits stocks fell: Remy Cointreau -4.5%, Pernod Ricard -3.6%, LVMH -2.2%.
European alcohol stocks fell, with Remy Cointreau down 4.5%, Pernod Ricard down 3.6%, and LVMH down as much as 2.2%.
What they said: “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 wrote.
“This will be great for the Wine and Champagne businesses in the U.S.”
French Trade Minister Laurent Saint-Martin rejected Trump’s threats, saying Europe "will not give in to threats".
The sources: Donald Trump post, Laurent Saint-Martin post, Reuters
