US President Donald Trump has threatened to introduce 200% tariffs on wine, champagne, and other alcoholic products imported from France and various European Union nations as a response to the bloc’s proposed tariffs on US-made whiskey.
“If this tariff is not removed immediately, the US will soon impose a 200% tariff on all wines, champagnes, & alcoholic products coming from France and other EU member countries,” he stated on his Truth Social platform.
Since entering office, Mr. Trump has initiated trade conflicts with both competitors and allies, using tariffs as leverage to influence countries on trade and other policy challenges.
Yesterday, the European Union announced tariffs in retaliation to US actions involving steel and aluminum, affecting approximately €26 billion ($28 billion) worth of US goods, set to be implemented in stages starting in April.
He described the EU as “one of the most hostile and abusive taxing and tariffing authorities in the world,” asserting that it “was created solely to exploit the United States.”
Concerns about Mr. Trump’s trade strategies and the possibility of them triggering a recession have unsettled financial markets. However, US stocks regained some value yesterday, despite a decline in some Asian markets.
Read more: Tariff threat ‘very concerning’ for Irish spirits sector
US distillers have expressed disappointment over the EU’s tax on American whiskey, calling it “deeply disappointing.”
“Reinstating these damaging tariffs during a time when the spirits industry is already experiencing a slowdown in the US market will further impede growth and adversely affect distillers and farmers across the nation,” remarked Chris Swonger, head of the Distilled Spirits Council, in a statement.
The imposition of similar tariffs in 2018 resulted in a 20% decrease in American whiskey exports to the European Union.
The removal of that measure in 2021 led to a nearly 60% increase in US whiskey exports, according to industry data.
It remains unclear what legal rationale Trump would use to justify increasing tariffs on European alcoholic beverages.
Mr. Trump’s tariff campaigns have targeted Canada, Mexico, and China, accusing them of not sufficiently addressing fentanyl smuggling or illegal immigration into the United States.
He has also focused on specific commodities, including steel, aluminum, and copper.
In retaliation to Trump’s strategies aimed at correcting what he claims is an unfair trade balance, some countries, like the EU, have enacted retaliatory tariffs against the United States.
China has pledged to take “all necessary measures” in response to US actions and has already implemented tariffs of 10% and 15% on various US agricultural products, including soybeans and chicken.
European Commission president Ursula von der Leyen stated that the EU’s retaliation, which impacts products ranging from bourbon to motorcycles, is “strong but proportionate.”
