US President Donald Trump has vowed to place a 200% tariff on European wine and spirits.
The threat follows the European Union announcing it would reinstate a 50% tariff next month on American whiskey and possibly other US spirits.
Posting on social media platform Truth Social, President Trump said: “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% tariff on whiskey.
“If this tariff is not removed immediately, the US will shortly place a 200% tariff on all wines, Champagnes and alcoholic products coming out of France and other EU represented countries. This will be great for the wine and Champagne businesses in the US.”
During Trump’s first term he launched a trade war after enacting tariffs on steel and aluminum, with the EU counterattacking by imposing a 25% tariff on American whiskey.
The tariff led to a 20% decrease in exports to the EU and cost the American whiskey industry hundreds of millions of dollars.
In late 2021 the EU paused the tariff, but the suspension is set to expire March 31, with the two sides yet to reach an agreement on the steel and aluminum dispute.
Industry associations have begged for a peaceful resolution.
Pauline Bastidon at SpiritsEurope commented: “This cycle of tit-for-tat retaliation must end now. We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us.
“The EU and US must de-escalate this dispute now and ensure spirits are never again caught in the crossfire.
“We are each other’s top markets – interwoven by investment, tradition, and shared success, so keep spirits out.”
Distilled Spirits Council of the US (Discus) President Chris Swonger said: “The US-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997.
“The US spirits sector supports more than US$200 billion in economic activity, 1.7 million jobs across production, distribution, hospitality and retail, and the purchase of 2.8 billion pounds of grains from American farmers.
“We urge president Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create US jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs.”