Former U.S. President Donald Trump has escalated the ongoing trade war with the European Union by threatening a massive 200% tariff on European alcoholic beverages. This move comes in response to the EU’s recent 50% tariff on American spirits, a countermeasure to Trump’s tariffs on steel and aluminum imports.
Trump made the announcement on Truth Social, stating that unless the EU removes its tariffs immediately, the U.S. will impose heavy duties on wines, champagnes, and other alcoholic products from France and other European countries. “This will be great for the Wine and Champagne businesses in the U.S.,” he claimed.
The Escalating Trade War
The trade tensions began when Trump’s administration imposed a 25% tariff on European steel and aluminum. The EU retaliated with a 50% tariff on U.S. spirits and additional duties on €26 billion ($28 billion) worth of American goods, including bourbon, motorcycles, and boats. These countermeasures, set to take effect in April, have sparked concerns among businesses on both sides.
Industry and Government Reactions
- The U.S. alcohol industry warned that these tariffs could severely impact American businesses, just as previous trade disputes did. When the EU imposed a 25% tariff on U.S. whiskey in 2018, American whiskey exports to Europe dropped by 20% through 2021.
- The French Trade Minister, Laurent Saint-Martin, criticized Trump’s threats, saying, “Trump is escalating the trade war he has chosen to start. We will not give in to threats and will always protect our industries.”
- The EU Commission’s trade spokesperson, Olof Gill, urged the U.S. to revoke its steel and aluminum tariffs, calling for negotiations instead of retaliatory measures.
- The Irish Whiskey Association also voiced concerns, stating that tariffs put “jobs, investments, and businesses at risk.”
What’s at Stake?
Alcoholic beverages are a significant part of the EU’s exports to the U.S. France alone shipped nearly 27 million bottles of Champagne to America in 2023, making the U.S. the top buyer of the premium drink. If Trump’s proposed tariffs go into effect, European alcohol producers could face major losses, while American consumers may see higher prices on their favorite imported beverages.
With both sides refusing to back down, this trade dispute could further escalate, affecting global markets and industries beyond alcohol.
