The ongoing trade dispute between the United States and the European Union (EU) took a dramatic turn on Thursday as President Donald Trump threatened to impose a massive 200% tariff on European alcoholic beverages.
The move came in response to the EU’s newly announced 50% tariff on American whiskey, a retaliatory measure against Trump’s steel and aluminum tariffs.
In a post on Truth Social, Trump made it clear that his administration would not stand down.
“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,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”
The trade war, which was reignited after Trump’s 25% tariffs on aluminum and steel took effect at midnight on Wednesday, quickly escalated as the EU hit back with tariffs on €26billion ($28 billion) worth of American goods. The EU’s countermeasures, which will take effect in April, target key U.S. exports, including boats, motorbikes, and bourbon.
Calling the EU’s actions “swift and proportionate,” the European bloc defended its move as necessary to counter what it described as an “unjustified” trade policy from the US.
Trump, however, saw it differently. Speaking from the Oval Office on Wednesday, he vowed to retaliate.
“Of course, I will respond,” he said.
On Thursday, he doubled down on his stance, taking direct aim at the EU’s trade policies.
“The EU is 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,” Trump said.
The US spirits industry has expressed deep concerns over the EU’s decision, warning of severe consequences for American whiskey exports.
CEO of the Distilled Spirits Council of the United States (DISCUS), Chris Swonger, called the tariffs “deeply disappointing” and warned of significant setbacks.
“These measures will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,” Swonger said in a statement.
Trump also criticised the EU’s decision to target American bourbon, calling it “nasty.”
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