Trump threatens 200% tariff on E.U. booze over tax on U.S. whiskey
President Donald Trump threatened Thursday to impose 200% tariffs on alcohol from the European Union in response to the region’s retaliatory 50% tariff on U.S. whiskey, further escalating tensions between two longtime trading partners.
Trump also sharpened his rhetoric toward the E.U., which has for decades been one of the closest U.S. allies.
“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,” Trump wrote on Truth Social. “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. This will be great for the Wine and Champagne businesses in the U.S.”
The U.S. remains the world’s largest import market for both wine and champagne, with the former comprising $4.9 billion in annual sales and the latter more than $1.7 billion. Meanwhile, exports of U.S.-made wine rank fifth among all nations at about $1 billion, while its exports of champagne and sparkling wine total just $67 million, 12th in the world.
The impact of the tit-for-tat tariffs could weigh heavily on U.S. consumers, who depend on import of the goods, than manufacturers of them.
