President Donald Trump has vowed to impose a sweeping 200% tariff on European alcoholic beverages, responding to the European Union’s retaliatory tariffs on U.S. steel and aluminum.
The escalating trade battle intensified after the EU announced a 50% tariff on American spirits, set to take effect on April 1. The move came swiftly after the U.S. imposed a 25% tariff on steel and aluminum imports. In a fiery post on Truth Social, Trump declared that unless the EU withdraws its tariff, the U.S. would hit back with severe levies on wines, champagnes, and other alcoholic imports from France and other EU nations.
“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,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”
The EU quickly condemned the U.S. tariffs as “unjustified” and responded with countermeasures targeting €26 billion ($28 billion) worth of American goods, including bourbon, motorbikes, and boats. French Trade Minister Laurent Saint-Martin criticized Trump for “escalating the trade war he has chosen to start” and vowed to “fight back.”
“We will not give in to threats and will always protect our industries,” Saint-Martin said in a statement on X (formerly Twitter).
Olof Gill, spokesperson for the EU Commission, urged the U.S. to revoke the steel and aluminum tariffs. “We want to negotiate, to avoid tariffs in the future,” he said. “They bring nothing but lose-lose outcomes.”
The alcohol industry is bracing for fallout. France exported nearly 27 million bottles of champagne to the U.S. in 2023, making the U.S. its largest market. The Irish Whiskey Association warned that tariffs “put jobs, investments, and businesses at risk and have the potential to be devastating.”
“There is no winner in a trade war,” the association stated, emphasizing that the U.S. remains its biggest market.
The Distilled Spirits Council reported that after the EU responded to Trump’s 2018 tariffs with a 25% levy on U.S. whiskey, American exports to Europe fell by 20% through 2021. Trump’s additional 25% tariffs on Canada and Mexico could also endanger over 31,000 jobs in the sector.
