WASHINGTON: Donald Trump has threatened a 200% tariff on European alcoholic beverages in response to EU trade actions.
The European Union recently imposed a 50% tariff on U.S. whiskey, escalating ongoing trade tensions.
Trump reacted on Truth Social, demanding the EU remove its tariff or face consequences.
The tariff dispute stems from the EU’s response to U.S. steel and aluminum trade policies.
This conflict raises concerns about further economic retaliation between the U.S. and Europe.
Trump’s Statement
Trump warned that all wines, champagnes, and alcohol from the EU could face severe tariffs.
He said this would benefit American wine and champagne businesses by reducing foreign competition.
Trump accused the EU of unfair trade practices designed to exploit the U.S. economy.
He called the EU “one of the most hostile and abusive taxing authorities in the world.”
His remarks indicate the potential for escalating trade tensions between both sides.
U.S. Response
Trump confirmed his plans to retaliate during an Oval Office briefing on Wednesday.
He assured reporters that he would take decisive action against the EU’s whiskey tariff.
The U.S. has long criticized European trade policies for allegedly disadvantaging American businesses.
Trump believes imposing tariffs on European alcohol will pressure the EU to back down.
His proposed tariff hike could significantly impact European alcohol exports to the U.S.
Economic Impact
European winemakers and distilleries could face significant losses if tariffs take effect.
The U.S. is a key market for European wines, champagnes, and spirits.
Higher tariffs could make imported alcohol more expensive for American consumers.
Experts warn that escalating tariffs could harm both economies by disrupting trade.
The dispute could also lead to further retaliatory actions from European governments.
Future Uncertain
It remains unclear whether the EU will remove the whiskey tariff or respond with new measures.
Trade analysts warn that an ongoing trade war could destabilize global markets.
Some industry leaders urge both sides to negotiate rather than escalate the conflict.
If no agreement is reached, American consumers may see alcohol prices rise sharply.
The coming weeks will determine whether this dispute worsens or finds a resolution.
