The United States President, Donald Trump, has threatened to impose 200% tariffs on wine, champagne, and other alcoholic beverages from the European Union (EU) in retaliation against the bloc’s planned 50% levy on American-made whiskey.

Trump’s latest trade war salvo follows the EU’s decision to introduce tariffs on $28 billion worth of US goods, set to roll out in stages starting in April. The European tariffs are a countermeasure against the US steel and aluminum tariffs, which took effect on Wednesday.

In a post on Truth Social, Trump 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.”

European Wine and Spirit Makers React

The proposed 200% tariff has drawn sharp criticism from European alcohol producers, who warn that such a move could cripple exports and drastically increase prices for American consumers.

• Taittinger, a French champagne company, estimated that some of its bottles, which currently retail for $60, could soar to over $180 if Trump’s tariffs take effect.
• The French Federation of Wine and Spirit Exporters (FEVS) blamed the European Commission for putting them directly in Trump’s crosshairs.
• FEVS Director General Nicolas Ozanam expressed frustration, stating:
  

  “We are fed up with being systematically sacrificed for issues unrelated to our own.”

Trump Criticizes EU, Calls Bloc ‘Hostile and Abusive’

Trump defended his stance, calling the EU’s planned whiskey tariffs “nasty” and branding the bloc as “one of the most hostile and abusive taxing and tariffing authorities in the world.”

Throughout his presidency, Trump has frequently criticized the EU, arguing that it was created to take advantage of the United States in trade deals. Speaking to reporters, he maintained that he would not back down on his aggressive tariff policy, despite growing concerns from American businesses and trade groups.

European Leaders Respond to Tariff Threats

The escalating trade tensions have sparked diplomatic reactions from European leaders.

• European Commission President Ursula von der Leyen said the EU is open to negotiations but warned that tariffs are ultimately “bad for business” on both sides.
• French Foreign Trade Minister Laurent Saint-Martin took a firm stance, stating:
  

  “We will not give in to threats. We are determined to retaliate if necessary.”

• Spain’s Agriculture Minister expressed hope for a diplomatic resolution, signaling a more cautious approach.

Potential Economic Impact

If implemented, Trump’s 200% tariff on EU alcoholic beverages could have significant economic consequences:

1. Drastic Price Increases for US Consumers – European wines and champagnes would become far more expensive, pushing US consumers toward domestic or alternative imports.
2. Economic Losses for European Exporters – France, Italy, and Spain are major wine exporters to the US. A sharp decline in American demand could hurt vineyards and producers across the continent.
3. Retaliatory Tariffs from the EU – If the dispute escalates further, the EU may impose additional tariffs on American exports, further straining transatlantic trade relations.

What’s Next?

With both sides signaling a willingness to negotiate, trade analysts suggest that talks may take place to prevent full-scale economic retaliation. However, Trump’s history of using tariffs as leverage suggests that he may push forward unless the EU backs down on its whiskey tariff plans.

As the deadline for the EU’s tariffs approaches in April, businesses, economists, and policymakers will be closely monitoring whether diplomatic negotiations can prevent a full-fledged trade war.