Aamer Madhani and Josh Boak, Associated Press
WASHINGTON (AP) — President Donald Trump on Thursday threatened 200% tariffs on European wine, champagne and spirits if the European Union advances planned tariffs on American whiskey.
The European import tax, announced in response to the US administration’s tariffs on steel and aluminum, is expected to come into effect on April 1, just before separate mutual tariffs Trump plans to place in the EU.
But in a morning social media post, Trump pledged a new escalation of his trade war if the EU advances 50% tax on American whiskey.
“If this tariff is not removed immediately, the US will soon place a 200% tariff on all wines, champagne and alcoholic products representing France and the other EU,” Trump wrote. “This is perfect for the US wine and champagne business.”
European Commission Chairman Ursula von der Leyen said on Thursday that EU trade commissioners will call US counterparts on Friday.
“I don’t like tariffs because I think tariffs are taxes and they’re bad for the business and bad for the consumer,” she said. “We’ve always said we’re protecting our interests, and we’ve said that and showed it, but at the same time we’d like to emphasize that we’re open to negotiations.”
The US president defined the opening weeks at the White House in his almost daily drama on tariffs, saying that taxing imports could cause some economic pain, but ultimately leads to more domestic manufacturing and greater respect for America. The S&P 500 Stock Index fell by around 1.5% in Thursday afternoon trading, but European alcohol stocks also fell.
But now that the EU and Trump are over alcohol tariffs, the effects of the trade war could emerge directly in ways that consumers can see right away. It is unclear how import taxes will be absorbed among vintners, distilleries, brewers, distributors, retailers and consumers.
Due to Trump’s threat, a formerly $15 Italian Prosecco bottle could raise the price to $45. Similarly, European response to Trump’s steel and aluminum tariffs means that the cost of Paris’ 30 euro bourbon bottles could increase to 45 euros.
Holly Seidewand, owner of First Fill Spirits, a shop in Saratoga Springs in New York, said the spirits industry was already shaking from the announcement of a layoff for the Kentucky Bourbon sector and the EU-planned tariffs on American spirits before Trump threatened European alcohol.
“This ongoing tariff war will not only hurt importers, it will weaken domestic brands, disrupt distributors, and narrow down retailers that rely on global choices,” she said. “In the end, consumers will bear the brunt of that.”
Gabriel Picard, who heads the French Federation of Wine and Spirits Exporters, said the 200% tariff would be a “hammer blow” for the sector. He said the US market is worth 4 billion euros ($4.3 billion) a year for French exporters of wine and spirits.
“If our products have a 200% tariff, a single bottle will continue to be expedited. All exports to the US will be total, total and halted,” Picard said in an interview with the Associated Press. “We’re 200% at work and there’s no better market.”
For now, it seems that Europe doesn’t want to retreat.
“Trump is escalating the trade war he chose,” French Foreign Trade Minister Laurent Saint-Martin said, “France is determined to fight back, together with the European Commission and our partners.” We don’t succumb to threats and always protect our industry. ”
Trump’s latest tariff threat suggests that even the companies standing by him could raise questions about whether the wider business community is willing to openly challenge a series of trade wars that hurt stock markets and scare consumers worried about worsening inflation.
Bernard Arnaud, CEO of French luxury company LVMH, attended Trump’s inauguration in January. His company’s wine and spirit brands could be subject to retaliation fees sought by the US president, including Moet & Chandon, Krugue, Veb Cricott and Hennessy. The Italian-based Campari Group could also be hurt after the White House highlighted it at a press conference Tuesday to open its US factory.
Still, Trump feels upset with the EU, complaining to reporters Thursday about the lack of U.S. car sales and the lawsuits and fines filed against the Google and Facebook parent meta.
“They are suing all these companies and removing billions of dollars from American companies,” Trump said. “And I think they use it to run Europe or something.”
Trump announced new steel and aluminum tariffs on Wednesday, openly challenging US allies and vowing to reclaim “stolen” wealth from other countries, and to draw swift retaliation.
He has separate tariffs in Canada, Mexico and China and plans to tax imports from the European Union, Brazil and South Korea from April 2nd by charging “mutual” fees.
The EU has announced its own measures. European Commission President Ursula von der Leyen said the United States is “addling with 26 billion euros worth of tariffs as it applies to tariffs worth $28 billion.”
These measurements cover not only steel and aluminum products, but also textiles, home appliances and agricultural products.
European Commission spokesman Olov Gill said on Thursday shortly before Trump’s announcement that the EU “is prepared for what might come, and we’ve been preparing for more than a year.”
“We are calling on the US to immediately cancel the tariffs imposed yesterday and hope to negotiate to avoid future tariffs,” Gill added. “They just get a loss result and we want to focus on results that are beneficial to both sides.”
Meanwhile, US whiskey makers have encouraged Trump to mediate the deal.
“We urge President Trump to secure a spiritual agreement with the EU and return to zero-to-zero tariffs, which will create jobs for the US and increase the production and exports of the US hospitality sector.”
Exports to the EU fell 20% until 2021 when Europe responded to Trump’s 2018 tariffs on US whiskey with a 25% tax. Trump’s separate 25% tariffs in Canada and Mexico could put 31,000 jobs at risk in the sector.
Reported by Brussels AP writer Rone Cook, Samuel Petrekin of Paris, John Lester, May Anderson, Dee Ann Durbin and Mike Warren.
Original issue: March 13, 2025 10:10am EDT
