Trump threatens 200% tariff on EU alcohol amid trade war
US President Donald Trump has threatened a 200% tariff on EU alcohol imports in response to the bloc’s planned 50% tax on US whiskey, reports a Kazinform News Agency correspondent.
Trump demanded the “nasty” tariff be scrapped, calling the EU “hostile and abusive.” A European Commission spokesperson confirmed trade talks are being arranged.
The dispute is the latest in an ongoing trade war, with past US tariffs on steel and aluminum prompting EU retaliation, including a 25% tax on American whiskey, which led to a 20% sales drop.
Trump warned, “If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all wines, champagnes & alcoholic products coming out of France and other EU represented countries.”
US-based wine importers warn that the measures would be catastrophic for the industry, impacting businesses across the supply chain, including restaurants, bars, and distributors nationwide.
Markets reacted negatively, with US stocks falling and major EU spirit-makers like Pernod Ricard and LVMH seeing losses. White House officials blamed the EU for the escalation, while European Central Bank President Christine Lagarde warned, “Everybody will suffer” if the dispute turns into a full-blown trade war.
Earlier, it was reported that in the final quarter of 2024, the EU exported more goods to non-EU countries than it imported, resulting in a trade surplus of €27.2 billion, according to figures published by Eurostat, the statistical office of the European Union.