WASHINGTON: US President Donald Trump has threatened to impose a 200% tariff on wine, champagne, and other alcoholic beverages from European Union (EU) nations in retaliation for the bloc’s proposed levies on American whiskey.
Trump issued the warning on Thursday via his Truth Social platform, stating that if the EU proceeded with its planned tariff of 50% on US whiskey, he would respond with severe trade measures.
“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-represented countries,” Trump posted.
“This will be great for the wine and champagne businesses in the US.”
US-EU trade war
The dispute stems from the EU’s recently announced tariffs on $28 billion worth of American goods, which are set to be introduced in stages from April.
The European measures are a direct response to the US government’s earlier decision to impose tariffs on steel and aluminium imports.
Trump has consistently used tariffs as a tool to exert pressure on trade partners, arguing that they help bolster domestic manufacturing and correct perceived trade imbalances. However, the EU remains steadfast in its response.
Laurent Saint-Martin, France’s Minister for Foreign Trade, rejected Trump’s threats, vowing that France would not back down.
“Trump is escalating the trade war he has chosen,” Saint-Martin stated on X (formerly Twitter).
“France, together with the European Commission and our partners, is determined to fight back. We will not give in to threats and will always protect our industries.”
European Commission President Ursula von der Leyen also defended the EU’s stance, asserting that the bloc’s countermeasures were “strong but proportionate.”
Industry reaction
The US spirits industry has reacted with concern over the looming tariffs, urging both sides to negotiate a settlement.
Chris Swonger, president and CEO of the Distilled Spirits Council, described the EU’s levy on American whiskey as “deeply disappointing.”
“The US-EU spirits sector has operated under a zero-for-zero tariff agreement since 1997,” Swonger stated.
“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.”
When the EU imposed a 25% tariff on American whiskey in response to Trump’s 2018 trade measures, US whiskey exports to the bloc declined by 20% over three years.
The removal of these tariffs in 2021 led to a sharp recovery, with US whiskey exports surging by nearly 60% to $699 million in 2024, according to industry data.
Meanwhile, French wine and spirits producers have expressed frustration over being caught in the trade dispute.
“We are fed up with being systematically sacrificed for issues unrelated to our own,” said Nicolas Ozanam, director general of the Fédération des Exportateurs de Vins et Spiritueux de France (FEVS).
Wider trade war impact
Trump’s trade policies have targeted a range of countries, including Canada, Mexico, China, and South Korea, often citing unfair trade practices or national security concerns.
He has also threatened tariffs on specific commodities such as steel, aluminium, copper, and agricultural goods.
China has vowed to take “all necessary measures” in response to US tariffs, having already imposed duties of 10% to 15% on American agricultural products such as soybeans and poultry.
The European Commission, however, insists that its measures remain proportionate.
European Commission spokesperson Olof Gill said the EU had been preparing for such a scenario for over a year.
“We call on the US to immediately revoke the tariffs imposed yesterday, and we want to negotiate to avoid tariffs in the future,” Gill said.
“They bring nothing but lose-lose outcomes, and we want to focus on win-win outcomes.”
