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Trump Threatens 200% Tariff on European Alcoholic Products
US-EU Trade Tensions Escalate
U.S. President Donald Trump has threatened to impose a 200% tariff on all wines and other alcoholic products from Europe if the European Union does not remove its planned tax on American whiskey.
EU Plans Retaliatory Tariffs
In response to U.S. tariffs on steel and aluminum, the European Commission announced it would impose counter-tariffs on $28 billion worth of U.S. goods starting next month. Despite this, the EU stated it remains open to negotiations and believes higher tariffs are not in anyone’s interest.
Trump’s Response
Trump responded on Truth Social, calling the EU “one of the most hostile and abusive taxing and tariffing authorities in the world.” He criticized the EU’s 50% tariff on American whiskey and warned that if it is not removed, the U.S. will impose a 200% tariff on European wines, champagnes, and other alcoholic products.
“This will be great for the wine and champagne businesses in the U.S.,” he added.
Impact on Trade and Markets
According to Eurostat, EU wine exports to the U.S. were valued at 4.9 billion euros last year, making up 29% of the bloc’s total wine exports. France accounted for nearly half of those exports, while Italy made up almost 40%.
Following Trump’s comments, U.S. stock futures dropped, and shares of European spirits manufacturers declined.
EU Tariffs Set to Take Effect
The European Commission confirmed that its suspension of tariffs on U.S. products will end on April 1, with full implementation by April 13. The Commission did not immediately respond to Trump’s remarks.
Industry Concerns
European spirits and cosmetics industries have criticized the EU’s retaliatory tariffs, arguing that they put Europe’s larger trade relationship with the U.S. at risk. The EU’s countermeasures target a range of industrial and agricultural products, including steel, aluminum, textiles, home appliances, plastics, poultry, beef, dairy, and vegetables.
“Trump Threatens 200% Tariff on European Alcoholic Products” “Trump Threatens 200% Tariff on European Alcoholic Products”