U.S. President Donald Trump on Thursday threatened to slap a 200 percent tariff on all “wines, champagne and alcoholic products” from France and other EU countries.
The threat comes after the White House put global tariffs on steel and aluminum, with the EU readying retaliatory tariffs of its own in what threatens to escalate into a full-scale transatlantic trade war.
In his post on Truth Social, Trump claimed the EU “put a nasty 50 percent tariff on whisky,” even though the EU’s tariff on U.S. bourbon will only kick in from April 1.
“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.
France, Italy and Spain would be hardest hit by the 200 percent mark-up.
“France remains determined to respond with the European Commission and our partners,” junior trade minister Laurent Saint-Martin wrote on X. “Trump is escalating the trade war he chose to unleash.”
The EU does not import a significant amount of wine from the United States. Even though some U.S. producers call their sparkling wines ‘champagne,’ the bubbly drink can legally only be produced in the Champagne region of France.
Market closed
“This would de facto close the U.S. market for EU wine makers,” said Ignacio Sánchez-Recarte, who leads the European Committee of Wine Companies, or CEEV. “For any wine producer in Europe, the U.S. will be their biggest market. And there is no alternative” in size, nor in income levels.
“We know we are vulnerable because of the imbalance,” Sánchez-Recarte said, who told POLITICO he’d been in touch with the European Commission already. “We’re not surprised, but 200 percent … that we didn’t expect.”
Trump’s exorbitant tariffs on European booze marked his second trade escalation in two days — and there are more trigger points to come.
The first round of EU retaliation kicks in on April 1, with Trump’s plan for wide-ranging “reciprocal” tariffs slated for the following day. A bigger batch of EU measures would follow April 13. The EU considers the U.S. steel and aluminum tariffs unjustified and illegal, and its $28 billion total in retaliatory tariffs are intended to match their cost.
For now, Brussels is keeping calm … and having another drink.
“Remaining calm, united and determined is the only solution,” said French Marie-Pierre Vedrenne, a lawmaker who sits on the European Parliament’s trade committee.
“Dear President Trump. No need to worry. We’ll drink our own wine,” tweeted Kathleen Van Brempt, a Belgian lawmaker who is also on the trade committee.
This story is being updated. Additional reporting by Giorgio Leali.
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