Former President Seeks Retaliation for EU’s 50% Levy on Bourbon Whiskey
Donald Trump has announced plans to impose a 200% tariff on European wine, champagne, and other alcoholic imports, escalating tensions in an ongoing trade conflict with the European Union.
Posting on his Truth Social platform on Thursday, Trump justified the move as a countermeasure against the EU’s newly introduced 50% tariff on American bourbon whiskey, which is set to take effect on 1 April. The EU’s decision is part of a broader €26 billion retaliation package against Trump’s previous 25% tariffs on steel and aluminium imports.
Trump has long argued that the US has been exploited by its trading partners, insisting that higher tariffs will encourage domestic production and bring back jobs. However, most mainstream economists reject this claim, warning that such measures could push the US economy into recession.
Despite initiating the trade dispute, Trump has expressed anger over the EU’s retaliatory actions. He stated: “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.”
The US has a history of sidestepping European geographical protection rules, with American supermarkets frequently selling local imitations of products such as champagne and parmesan.
European officials responded firmly, vowing not to be intimidated. French foreign trade minister Laurent Saint-Martin stated: “We will not give in to threats. Donald Trump is escalating the trade war he started.” He further affirmed France’s commitment to defending its industries.
Stock markets reacted negatively to the developments. European indices fell on Thursday, with France’s Cac 40 dropping 0.3% and Germany’s Dax losing 0.6%. Shares of major European beverage companies also took a hit, with Pernod Ricard declining by nearly 4% and Rémy Cointreau by 3.5%. LVMH, the parent company of Moët & Chandon, fell 1.4%.
Nicolas Ozanam of the French wine and spirits exporters’ federation voiced his frustration, saying: “We are tired of being used as bargaining chips in disputes unrelated to our industry.”
In the US, markets also responded with volatility. The S&P 500 index fell by 0.7% after opening, though Trump’s economic advisors downplayed the significance of market fluctuations. Treasury Secretary Scott Bessent remarked, “We’re focused on the real economy, not short-term stock movements.”
Trump also repeated his long-standing criticism of the EU, accusing the bloc of being designed to take advantage of the US and describing it as “one of the most hostile and abusive taxing and tariffing authorities in the world.”
European Commission President Ursula von der Leyen countered Trump’s rhetoric, emphasising that trade relations between the EU and the US have historically provided prosperity and employment on both sides of the Atlantic.
