Trump threatens Europe with 200 percent tariff on wine, Champagne

In an escalation of the ongoing trade conflict, US President Donald Trump threatened to impose a massive 200 percent tariff on wine, Champagne, and other alcoholic beverages imported from the European Union (EU) if the EU does not immediately remove a tariff on American whiskey.

“The European Union, 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, has just put a nasty 50 percent Tariff on Whisky,” Trump stated on his social media platform, Truth Social, Caliber.Az reports.

“If this Tariff is not removed immediately, the US will shortly place a 200 percent tariff on all wines, champagnes, & alcoholic products coming out of France and other EU represented countries. This will be great for the Wine and Champagne businesses in the US”

Trump’s threat comes in the wake of the European Union’s retaliatory tariffs on American whiskey, which were triggered after the US imposed a 25 percent tariff on European steel and aluminum imports earlier this week. The EU has responded with a two-pronged strategy: first, it will allow the suspension of countermeasures imposed in 2018 and 2020 to expire on April 1, automatically reinstating the 50 percent tariff on American whiskey. Second, the European Commission is proposing a new set of countermeasures, targeting approximately $28 billion worth of US goods, which could take effect in mid-April.

Industry stakeholders have expressed concern about the potential impact of these tariffs. “The US-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997,” said a representative from the industry.

“We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create US jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs.”

By Vafa Guliyeva