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EU Whiskey Tariff: A Misstep?
French PM Questions EU’s Strategy
French Prime Minister François Bayrou has admitted that the European Union may have made a mistake by targeting American whiskey in its response to U.S. tariffs on steel and aluminum. He stressed the need for dialogue to prevent further economic damage, particularly to France’s cognac industry.
Trump’s Threat of 200% Tariffs
U.S. President Donald Trump recently warned that he would impose a 200% tariff on European wines and alcoholic beverages if the EU proceeds with its planned tax on American bourbon. This has raised concerns among European wine producers, particularly in France’s Champagne region.
Impact on European Producers
The escalating trade tensions have alarmed European exporters who depend on the U.S. market. French cognac makers are already facing tariffs from China in response to the EU’s duties on Chinese electric cars.
EU Counter-Tariffs Set for April 1
The EU’s first round of counter-tariffs, which include duties on American bourbon, is scheduled to take effect on April 1. Some European officials are now questioning the effectiveness of this strategy.
Diplomatic Efforts to Ease Tensions
Prime Minister Bayrou is expected to visit China to discuss the impact of tariffs on the cognac industry, though no official dates have been announced. Meanwhile, discussions with Washington are also being sought in an effort to de-escalate the trade dispute.
“EU Whiskey Tariff: A Misstep?”