U.S. President Donald Trump has once again stirred up controversy with his recent threats to impose 200% tariffs on wine, champagne, and other spirits produced in the European Union. This comes after the EU levied a 50% tariff on American-distilled whiskey, which Trump has deemed as “nasty.”
In a post on his Truth Social media platform, Trump accused the EU of being “one of the most hostile and abusive taxing and tariffing authorities in the world.” He went on to claim that the EU was formed in 1993 with the sole purpose of taking advantage of the United States economically.
When asked by a reporter at the White House if he would reconsider his heightened tariff threats against America’s allies, Trump responded with determination, stating, “We’ve been ripped off for years, and we’re not going to be ripped off anymore. No, I’m not going to bend at all – aluminum or steel or cars.”
This latest move by Trump is part of a larger tariff fight he has been waging with the United States’ biggest trading partners, including Mexico, Canada, China, and the EU. He claims that these tariffs are necessary to stop the flow of drugs, particularly fentanyl, into the U.S. from Mexico and Canada, and to encourage manufacturers to bring their operations back to the U.S. in order to create more American jobs.
Just last week, Trump imposed 25% tariffs on steel and aluminum exports from 35 countries, including the EU. In response, Europe quickly retaliated with its own tariffs on $28 billion worth of U.S. exports, while Canada imposed new tariffs on $20.7 billion worth of U.S. exports to its northern neighbor. Canada has also requested World Trade Organization dispute consultations with the U.S. over its import duties on certain steel and aluminum products.
The EU’s retaliatory measures not only target steel and aluminum products but also include textiles, home appliances, and agricultural goods. This includes products such as motorcycles, bourbon, peanut butter, and jeans, which were also hit during Trump’s first term in office.
The EU has strategically chosen products that will put political pressure on the U.S. while minimizing damage to Europe. EU officials have stated that their tariffs, which are paid by importing companies and then passed on to consumers, are specifically targeting products from states that are dominated by Republicans, such as beef and poultry from Kansas and Nebraska, wood products from Alabama and Georgia, and liquor from Kentucky and Tennessee.
Unfortunately, the spirits industry has become collateral damage in this trade dispute. Chris Swonger, head of the Distilled Spirits Council of the United States, expressed disappointment with the EU’s decision to tax U.S.-produced spirits, stating that it will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries. The EU is a major destination for U.S. whiskey, with exports increasing by 60% in the past three years after an earlier set of tariffs was suspended.
Swonger also highlighted the fact that the U.S.-EU spirits sector has had a zero-for-zero tariff agreement since 1997, making it a model for fair and reciprocal trade. He urged an end to the tariff fight over spirits between the U.S. and Europe, stating, “We want toasts, not tariffs.”
Trump’s tariff wars have caused a broad selloff in the stock market, with the three major U.S. stock indexes plunging in recent days. The S&P 500 finished Thursday more than 10% below its record high reached last month. However, Treasury Secretary Scott Bessent has dismissed concerns, stating that he is focused on the real economy and not worried about short-term market volatility.
Bessent also downplayed Trump’s threat to impose even bigger tariffs on European spirits, stating that one or two items with one trading bloc should not be a big concern for the markets. Trump, on the other hand, remains firm in his stance, stating that if the EU follows through with its 50% tariff on U.S.-distilled whiskey, he will impose a 200% tariff on all wines, champagne, and alcoholic products coming from France and other EU countries. He believes this will be beneficial for the wine and champagne businesses in the U.S.
In addition to his tariff threats, Trump also took aim at The Wall Street Journal, the country’s leading business publication, for not supporting his tariff plans. The newspaper’s editorial this week
