Thu Mar 13 17:14:06 UTC 2025: ## Trump Threatens 200% Tariff on EU Alcohol in Escalating Trade War

**Brussels/Washington D.C.** – A new front has opened in the escalating trade war between the United States and the European Union. President Donald Trump has threatened to impose a 200% tariff on all wines, champagnes, and alcoholic beverages from EU countries in retaliation for the EU’s recently announced tariffs on $28 billion worth of US goods.

The EU’s retaliatory measures, which include a 50% levy on US bourbon whiskey, were announced Thursday in response to US tariffs on steel and aluminum imports. Trump, via his Truth Social platform, denounced the EU’s actions, specifically targeting the whiskey tariff as “nasty” and characterizing the EU as a hostile trade entity.

French Foreign Trade Minister Laurent Saint-Martin swiftly rejected Trump’s threat, vowing to fight back against any tariffs on French alcohol. He accused the US of escalating a trade war initiated by Trump and reaffirmed France’s determination to retaliate. The European Commission also urged the US to revoke its steel and aluminum tariffs.

While US Commerce Secretary Howard Lutnick indicated plans to discuss the matter with European counterparts, no further details were provided. The threatened tariffs could significantly impact consumers. A $15 bottle of Italian prosecco could jump to $45, while a $30 bottle of bourbon in Paris could rise to $45.

The escalating conflict extends beyond just alcohol. Trump’s threats put even companies that have supported him, like LVMH, at risk. This raises concerns about the wider business community’s willingness to challenge Trump’s trade policies, which have already negatively impacted stock markets and consumer confidence.

Industry groups on both sides expressed dismay. The French wine and spirit exporters’ federation decried being “systematically sacrificed,” while the Distilled Spirits Council in the US called the EU tariffs “deeply disappointing,” citing a current market slowdown.

This latest escalation follows similar trade disputes initiated by Trump targeting Canada, Mexico, and China, often citing issues like fentanyl smuggling and illegal immigration as justification for tariffs on various commodities, including steel, aluminum, and copper. The ongoing uncertainty surrounding Trump’s trade policies continues to cause volatility in financial markets and fears of a potential recession.

Read More