Trump Threatens 200% Tariffs on Wine, Alcohol from EU; France Vows Retaliation
US President Donald Trump has threatened to impose 200% tariffs on wine, champagne, and other alcoholic products from European Union countries in retaliation against the bloc’s planned levies on US-produced whiskey. The announcement, made on Thursday via Trump’s Truth Social platform, marks the latest escalation in a series of trade disputes between the US and the EU. France swiftly responded, vowing to fight back against any tariffs on its wine and alcohol exports.
Trump’s Tariff Threat
Trump’s threat comes in response to the EU’s announcement on Wednesday of tariffs on $28 billion worth of US goods, set to take effect in stages from April. These measures are themselves a retaliation against 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. He criticized the EU’s 50% levy on US whiskey as “nasty” and accused the bloc of being “one of the most hostile and abusive taxing and tariffing authorities in the World.” Trump further claimed that the EU “was formed for the sole purpose of taking advantage of the United States.”
France’s Firm Response
France, a leading exporter of wine and spirits, immediately rejected Trump’s threats. Foreign Trade Minister Laurent Saint-Martin stated on X (formerly Twitter), “We will not give in to threats,” adding that France was “determined to retaliate.”
French wine and spirit exporters expressed frustration at being caught in the crossfire of trade disputes. Nicolas Ozanam, director general of the Federation of Wine and Spirits Exporters (FEVS), said, “We are fed up with being systematically sacrificed for issues unrelated to our own.”
EU Prepared for Escalation
The European Union has indicated it is prepared for further trade tensions. EU trade spokesman Olof Gill stated, “We are prepared for whatever might come and we have been preparing for over a year.” He emphasized the bloc’s regret over the US tariffs on steel and aluminum, which he described as counterproductive.
Impact on US Whiskey Industry
US distillers have expressed disappointment over the EU’s tariffs on American whiskey, which they say will harm an industry already facing a slowdown. Chris Swonger, head of the Distilled Spirits Council, called the EU’s move “deeply disappointing,” warning that it would “further curtail growth and negatively impact distillers and farmers in states across the country.”
Industry data shows that similar tariffs imposed in 2018 led to a 20% drop in American whiskey exports to the EU. When the tariffs were lifted in 2021, exports surged by nearly 60%, reaching $699 million in 2024.
Broader Trade Wars
Trump’s latest threat is part of a broader pattern of using tariffs as a tool to address trade imbalances and pressure other countries on policy issues. His administration has previously targeted Canada, Mexico, and China with tariffs, citing concerns over fentanyl smuggling and illegal immigration.
China has responded with tariffs on US agricultural products, while the EU has imposed retaliatory measures on goods ranging from bourbon to motorcycles. European Commission President Ursula von der Leyen described the EU’s actions as “strong but proportionate.”
Market Reactions and Uncertainty
The uncertainty surrounding Trump’s trade policies has caused volatility in financial markets. US stocks opened lower on Thursday, following declines in Asian markets, while European markets saw modest gains. Analysts warn that prolonged trade tensions could further destabilize global markets and hinder economic recovery.
Legal and Economic Implications
It remains unclear what legal justification Trump would use to impose such steep tariffs on European alcohol. Critics argue that his approach risks alienating key allies and damaging industries on both sides of the Atlantic.
Conclusion
Trump’s threat to impose 200% tariffs on European wine and alcohol has escalated trade tensions between the US and the EU, with France vowing to retaliate. The move underscores the ongoing challenges in global trade relations and raises concerns about the economic impact on industries and markets worldwide. As both sides dig in, the potential for further escalation looms, with significant implications for businesses, consumers, and international diplomacy.
