Trump Threatens 200% Tariff on European Wines as Trade War with EU Escalates

On Thursday, U.S. President Donald Trump threatened a 200% tariff on European wines, Champagne, and spirits if the European Union proceeds with its planned tariffs on American whiskey. This intensifies the ongoing global trade conflict, which is already rattling financial markets and raising fears of a recession.
Trump’s warning came after the EU announced a 50% tariff on U.S. whiskey, set to take effect in April. This move is part of the EU’s response to Trump’s 25% tariffs on steel and aluminum imports, which began earlier this week. Canada, a major U.S. aluminum supplier, has also introduced countermeasures.
Alcohol is becoming a central issue in the trade dispute, with growing tensions between the U.S. and Europe. In Canada, some retailers have already removed American bourbon from their shelves as relations sour.
The EU’s proposed tariffs, amounting to €26 billion ($28.31 billion), include symbolic items like dental floss and bathrobes, but a 50% duty on U.S. bourbon could significantly harm the industry. In 2023, the EU was responsible for about 40% of U.S. spirits exports.
Trump warned that if the EU imposed the whiskey tariff, the U.S. would retaliate with a 200% tariff on European wines and spirits, which he claims would benefit U.S. wine and Champagne producers.
European Commission President Ursula von der Leyen stated that the EU is open to talks but will protect its interests. The EU has been preparing for retaliatory actions, and a spokesperson emphasized the negative consequences of tariffs for both businesses and consumers.
The trade war’s impact is widespread. For instance, the price of a $15 bottle of Italian Prosecco could rise to $45 due to tariffs, and a 30-euro bottle of bourbon could cost 45 euros in Paris.
Holly Seidewand, a spirits retailer in New York, warned that tariffs not only affect importers but also disrupt domestic brands and retailers, with consumers ultimately bearing the cost. French exporters, whose wine and spirits industry generates €4 billion annually from U.S. sales, would be severely affected by a 200% tariff, according to Gabriel Picard, head of the French Federation of Exporters of Wines and Spirits.
Trump’s threats could harm companies like LVMH, which owns high-end brands such as Moët & Chandon and Hennessy, but the EU has pledged to defend its industries and will not back down.
The EU has already announced countermeasures against the U.S., affecting not only metals but also textiles, home appliances, and agricultural products. The European Commission has urged the U.S. to lift its tariffs, seeking a resolution to prevent further escalation.
Meanwhile, U.S. whiskey producers are calling on Trump to negotiate with the EU to eliminate tariffs, arguing that it would create American jobs and boost exports. Since the EU imposed a 25% tariff on U.S. whiskey in 2018, exports have dropped by 20%, putting tens of thousands of jobs at risk.