US President Donald Trump has warned that he will impose a 200% tariff on wine, champagne, and other alcoholic beverages from European Union countries if the EU moves forward with its planned tariffs on American whiskey. The EU announced tariffs on $28 billion worth of US goods, including a 50% levy on US bourbon whiskey, in retaliation for US tariffs on steel and aluminum imports.
In response to the EU’s decision, Trump posted on his Truth Social platform, stating, “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.” He criticized the EU’s 50% whiskey tariff as “nasty” and referred to the EU as “one of the most hostile and abusive taxing and tariffing authorities in the World.”
France quickly fired back, with Foreign Trade Minister Laurent Saint-Martin expressing that France would not give in to US threats. He accused the US of escalating the trade conflict that Trump initiated and emphasized France’s readiness to retaliate. Olof Gill, a spokesperson for the European Commission, called on the US to lift its tariffs on steel and aluminum.
The escalating tensions between the US and EU could have a significant impact on consumers. If the 200% tariff on alcohol is implemented, a $15 bottle of Italian prosecco could rise to $45, and a $30 bottle of bourbon in Paris could increase to $45 as well. This tariff dispute also raises concerns that even companies with close ties to Trump, like French luxury goods giant LVMH, could face collateral damage.
Nicolas Ozanam, the director of the French wine and spirit exporters’ federation, expressed frustration, saying exporters were “fed up with being systematically sacrificed for issues unrelated to our own.” Meanwhile, Chris Swonger, head of the Distilled Spirits Council in the US, called the EU’s tariff plans “deeply disappointing,” highlighting the struggles of the industry amid a market slowdown.
Trump’s trade wars have already targeted Canada, Mexico, and China, with concerns growing over their economic impact. As uncertainty builds around Trump’s trade policies, there are increasing fears that the tariffs could trigger a recession and hurt global financial markets.
