In a move that marks a sharp escalation in the ongoing trade dispute between the US and the European Union (EU), President Donald Trump has threatened to impose a 200% tariff on alcoholic beverages from EU nations in response to the latter’s 50% tariff on American spirits. He called EU “one of the most hostile and abusive taxing and tariffing authorities in the world”.
Taking to Truth Social, his social networking site, Trump warned that unless the EU rescinds its tariff immediately, the US will impose heavy duties on wine, champagne, and other alcoholic products from France and other EU member states, which he said “will be great for the Wine and Champagne businesses in the U.S.”.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” he posted, adding: “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.”
— Rapid Response 47 (@RapidResponse47) March 13, 2025
Retaliation To Retaliation
The trade tensions flared up after the EU imposed tariffs on $28 billion worth of American goods in response to Trump’s 25% tariff on steel and aluminium, which took effect on Wednesday. As reported by the media, the EU described its measures as “swift and proportionate”, targeting American industries such as boats, bourbon, and motorbikes.
The spirits industry in the US has expressed concern over the impact of these tariffs. In a statement, Chris Swonger, CEO of the Distilled Spirits Council of the United States, called the EU’s move “deeply disappointing”, warning that it would severely impact American spirits exports.
Trump, addressing the situation from the Oval Office on Wednesday, hinted that there would be retaliation. “Of course I will respond,” he was quoted as saying in a CNN report.
Trump has already hinted at additional tariffs set to take effect on April 2, potentially triggering further retaliation from the EU.
According to the CNN report, Wall Street has raised concerns over the impact of such trade policies, but Trump has shown no signs of backing down.
In a nationally televised address last week, the US president attacked India’s tariffs too, going to the extent of saying it is “next to impossible to sell anything to India”, and that India agreed to significantly cut its tariffs because “somebody is finally exposing them for what they have done”.
Trump said: “India charges us massive tariffs. Massive. You can’t even sell anything in India…They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done.”
