U.S. President Donald Trump has threatened to impose a 200% tariff on wine, champagne, and other alcoholic products from European Union (EU) countries, escalating tensions over the bloc’s planned levies on American whiskey.
Trump, who has frequently used tariffs as a tool in trade disputes, issued the warning on Thursday following the EU’s announcement of new duties on $28 billion worth of U.S. goods. The EU’s move, unveiled Wednesday, was in retaliation for Trump’s earlier tariffs on steel and aluminum imports.
“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 on his Truth Social platform.
France Vows Retaliation
French officials swiftly condemned the threat. Foreign Trade Minister Laurent Saint-Martin vowed on social media that France would “not give in to threats” and was “determined to retaliate.”
French wine and spirits exporters also voiced frustration, with Nicolas Ozanam, director-general of the industry federation FEVS, lamenting that their sector was “systematically sacrificed” in unrelated trade disputes.
EU trade spokesperson Olof Gill, speaking before Trump’s latest comments, said the bloc was prepared for any further escalation. “We have been preparing for over a year,” he stated, emphasizing regret over the initial U.S. tariffs on steel and aluminum.
Market and Industry Reactions
The standoff rattled financial markets, with U.S. stocks opening lower on Thursday, mirroring declines in Asian markets. European stocks, however, saw gains despite the uncertainty.
U.S. distillers also voiced disappointment over the EU’s whiskey tariffs. “Reimposing these debilitating tariffs will further curtail growth and negatively impact distillers and farmers,” said Distilled Spirits Council head Chris Swonger.
A previous tariff dispute in 2018 resulted in a 20% drop in American whiskey exports to the EU. However, after the tariffs were lifted in 2021, U.S. whiskey exports surged nearly 60% to $699 million in 2024.
Unclear Legal Justification for Tariffs
It remains uncertain what legal framework Trump would use to justify the proposed 200% tariff increase. His previous trade battles have targeted Canada, Mexico, and China, citing concerns over fentanyl smuggling and illegal immigration.
China, facing its own trade conflict with the U.S., has already imposed duties of 10% and 15% on American agricultural products, including soybeans and chicken. Meanwhile, European Commission President Ursula von der Leyen defended the EU’s retaliatory measures, calling them “strong but proportionate.”
The escalating trade dispute adds another layer of uncertainty to global markets and U.S.-EU relations as both sides brace for potential economic repercussions.
