U.S. President Donald Trump announced on Thursday his intention to impose a 200% tariff on all wines and alcoholic beverages imported from the European Union if the EU does not eliminate its tariff on whiskey.
In response, the European Commission revealed on Wednesday that it plans to implement counter-tariffs on U.S. goods valued at 26 billion euros ($28 billion) starting next month, escalating the ongoing global trade conflict triggered by U.S. tariffs on steel and aluminum.
Despite this, the EU’s executive body expressed a willingness to engage in negotiations, emphasizing that increased tariffs are not beneficial for anyone involved.
Trump intensified the situation with a post on social media on Thursday, stating, “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was created solely to exploit the United States, has just imposed a harsh 50% tariff on whiskey.”
He continued, “If this tariff is not lifted immediately, the U.S. will soon impose a 200% tariff on all wines, champagnes, and alcoholic products from France and other EU member countries. This will greatly benefit the wine and champagne industries in the U.S.”
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Following this announcement, U.S. stock futures declined, and shares of European spirits manufacturers fell.
The European Commission confirmed that it will lift its current suspension of tariffs on U.S. products on April 1, with the new tariffs set to take full effect by April 13.
