Trump's Shocking 200% Tariff Threat on EU Alcohol Imports: What You Need to Know!

In a dramatic escalation of trade tensions, former US President Donald Trump has issued a bold threat to impose a staggering 200% tariff on wine, champagne, and other alcoholic beverages imported from the European Union. This sweeping measure is intended to leverage concessions from the EU, particularly the removal of a 50% duty currently imposed on American whiskey.

On his Truth Social platform, Trump stated, “If this tariff is not removed immediately, the US will shortly place a 200% tariff on all wines, champagnes, and alcoholic products coming out of France and other EU countries. This will be great for the wine and champagne businesses in the US.”

The announcement sent shockwaves through European alcohol industries, where stocks tumbled in response. Major players like Pernod Ricard saw a dip of 3.2%, Rémy Cointreau dropped by 3.8%, and LVMH, owner of iconic brands like Moët & Chandon and Veuve Clicquot, experienced a 1.9% fall in its share price.

This latest development comes just a day after the EU announced countermeasures targeting US goods valued at up to €26 billion, reflecting a robust response to Trump's earlier imposition of 25% tariffs on imports of steel and aluminum. European Commission President Ursula von der Leyen expressed regret over the escalating conflict, stating, “Tariffs are taxes; they are bad for business and worse for consumers. They disrupt supply chains and introduce uncertainty into the economy.”

The ongoing dispute dates back to 2018 when the US initiated tariffs against certain EU products following a ruling by the World Trade Organization regarding illegal subsidies granted to Airbus. In retaliation, the EU set its own 25% tariffs on a range of US goods, including bourbon and peanut butter, significantly impacting trade in spirits.

From 1997 to 2018, spirits trade between the US and the EU was free from tariffs, promoting a flourishing market. However, exports of American whiskey to the EU plummeted from $552 million to $440 million between 2018 and 2021—a 20% decline. Yet, following the suspension of tariffs last year, there was a remarkable resurgence, with American whiskey exports projected to reach $699 million by 2024.

Meanwhile, the ripple effects of Trump's trade policies extend beyond Europe. Recently, Canadian provinces began removing US-made beer, spirits, and wine from store shelves due to similar tariffs imposed on Canadian goods. Canada is reportedly preparing to retaliate with a 25% tax on nearly C$30 billion worth of US products, intensifying the ongoing trade war.

As tensions between the US and its trading partners escalate, consumers, businesses, and stakeholders across the Atlantic brace for the possible fallout. Stay tuned as we continue to monitor this developing story that could reshape the landscape of international trade!