United States President Donald Trump has threatened to impose a 200% tariff on European alcoholic beverages in response to the European Union’s (EU) decision to levy a 50% tariff on U.S. spirits.
This marks a significant escalation in the ongoing trade dispute between the U.S. and the EU, triggered by Trump’s tariffs on steel and aluminium.
Trump’s announcement, made on Truth Social, warned that unless the EU removes its new tariffs, the U.S. will impose heavy duties on wines, champagnes, and other alcoholic products from France and other EU nations. He claimed this move would benefit the U.S. wine and champagne industries.
“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,” Trump said.
The EU’s 50% tariff, announced Wednesday, applies to $28 billion worth of American goods, including bourbon, motorbikes, and boats.
French Trade Minister Laurent Saint-Martin vowed retaliation, stating that France would “fight back” against Trump’s trade policies.
EU Commission spokesperson Olof Gill called for immediate negotiations, warning that trade wars result in “lose-lose outcomes.”
The U.S. spirits industry, already facing declining exports due to past trade conflicts, urged both sides to de-escalate.
Industry leaders warned that continued tariffs could cost European winemakers over €1 billion and further damage American distilleries, particularly in bourbon-producing states like Kentucky and Tennessee.
