U.S. President Donald Trump has threatened to impose a 200% tariff on wine, Champagne, and spirits from the European Union. This move comes in retaliation for the EU’s decision to reinstate a 50% tariff on American whiskey, a response to Trump’s recent 25% tariffs on all steel and aluminum imports.
The EU defended its countermeasures, with European Commission President Ursula von der Leyen stating they were a “strong but proportionate” response to U.S. tariffs. French Trade Minister Laurent Saint-Martin accused Trump of unfairly escalating tensions, vowing that Europe “will not give in to threats.”
Economic experts warn that the tariffs could significantly raise costs for businesses and consumers on both sides. A 200% tariff could triple the price of European alcohol in the U.S., while a 50% tariff on U.S. whiskey would slash U.S. exports to Europe, which saw a 20% drop in exports during a previous trade dispute.
