U.S. President Donald Trump has threatened to impose 200% tariffs on wine, champagne, and other beverages from the European Union (EU) after the bloc imposed a 50% tariff on American whiskey.
Trump called the EU one of the most “hostile and abusive” trade authorities and accused it of exploiting the United States for decades. He reiterated that he would not back down from the trade war, which includes tariffs on steel, aluminum, and automobiles.
In response, the EU swiftly imposed retaliatory tariffs on $28 billion worth of American exports, while Canada followed suit with new tariffs on $20.7 billion worth of U.S. goods. European officials aim to target products from Republican-dominated states, such as beef and poultry from Kansas and Nebraska, and whiskey from Kentucky and Tennessee.
The ongoing tariff dispute has significantly impacted the beverage industry, with U.S. whiskey exports to the EU previously rising by 60% over three years after earlier trade restrictions were lifted. Industry leaders have voiced concerns, calling for an end to the tariff war and warning of severe economic consequences.
Stock markets have also reacted negatively, with major U.S. indices experiencing sharp declines. However, U.S. Treasury Secretary Scott Bessent dismissed concerns, saying, “We are focused on the real economy. Market fluctuations over a few weeks are not a major issue.”
Trump, in a social media post, emphasized that if the EU enforces its 50% tariff on American whiskey, he will impose a 200% tariff on “all wine, champagne, and alcoholic beverages coming from France and other EU nations. This will be great for U.S. wine and champagne businesses.”
The Wall Street Journal criticized the tariff policies, arguing that tariffs ultimately function as a tax on consumers and businesses. Trump dismissed the publication’s stance, calling it “outdated, weak, and bad for America.”
The trade dispute marks a significant escalation in economic tensions between the U.S. and the EU, with both sides preparing for potential long-term consequences.
