US President Donald Trump has threatened to impose 200% tariffs on wines, champagne and other alcoholic products from France and other European Union (EU) countries in retaliation against the bloc’s planned levies on US-produced whiskey, according to RTE news report on Thursday.
“If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES,” he posted on his Truth Social platform.
It would be recalled that Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.
The EU yesterday unveiled tariffs countering US moves on steel and aluminum, hitting some €26 billion ($28bn) of US goods in stages from April.
The US President renewed his criticism of the bloc, singling out a 50% levy on US whiskey as being “nasty” and termed the EU “one of the most hostile and abusive taxing and tariffing authorities in the World” and said it “was formed for the sole purpose of taking advantage of the United States.”
Uncertainty over Mr Trump’s trade plans and worries that they could trigger a recession have roiled financial markets. But US stocks regained some ground yesterday even as some Asia markets retreated.
US distillers have called the EU’s levy on American whiskey “deeply disappointing.”
In a statement, Distilled Spirits Council head, Chris Swonger, lamented: “Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country.”
Industry data showed that 2018 imposition of similar tariffs led to a 20% drop in American whiskey exports to the EU countries while the lifting of the fiscal measure in 2021 led to US whiskey exports surge by nearly 60%.
It was not immediately clear what legal justification Trump would rely on to hike tariffs on European alcohol.
Since his assumption of office in February, Trump’s tariff wars have taken aim at Canada, Mexico and China over allegations they are not doing enough to curtail fentanyl smuggling or illegal immigration into the United States.
He has also taken aim at specific commodities, including steel, aluminum and copper.
As expected, some countries, much like the EU, have imposed retaliatory tariffs on the United States in response to Trump’s moves to address what he terms unfair trade imbalances.
China has vowed “all necessary measures” in response to US measures, and has already imposed duties of 10% and 15% targeting US agriculture products ranging from soybeans to chicken.
Commenting on the development, European Commission President, Ursula von der Leyen, maintained that the EU’s retaliation, affecting products ranging from bourbon to motorbikes, was “strong but proportionate.”
