Trump threatens retaliatory 200% tariff on European wine after EU proposes American whiskey tax

Trump Threatens 200% Tariff on European Alcohol Amid Escalating Trade Dispute

On Thursday, former President Donald Trump warned of a 200% tariff on European wine, Champagne, and spirits if the European Union proceeds with its planned tax on American whiskey.

The EU’s proposed tariff, introduced in response to U.S. steel and aluminum duties, is set to take effect on April 1. This move comes just ahead of additional reciprocal tariffs Trump has announced against the EU.

In a social media post Thursday morning, Trump vowed to escalate the trade dispute if the EU moves forward with its planned 50% tariff on American whiskey.

“If this tariff is not removed immediately, the U.S. will shortly place a 200% tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”

EU Responds, Calls for Negotiations

European Commission President Ursula von der Leyen acknowledged the escalating tensions, confirming that the EU trade commissioner would speak with his U.S. counterpart on Friday.

“We don’t like tariffs because they are taxes that harm businesses and consumers,” von der Leyen stated. “At the same time, we will defend our interests. We’ve said it, we’ve shown it, but we remain open to negotiations.”

Trump has made tariffs a central part of his economic strategy, arguing that taxing imports may cause short-term economic pain but will ultimately promote domestic manufacturing and boost the U.S. economy.

However, as the trade battle now shifts to alcohol, consumers may begin to feel the effects. It remains unclear how these tariffs will impact producers, distributors, retailers, and consumers. If implemented, a previously untaxed $15 bottle of Italian Prosecco could rise to $45, while a 30-euro bottle of bourbon in Paris could jump to 45 euros due to the EU’s countermeasures.

Industry Experts Warn of Economic Fallout

The spirits industry is already struggling with layoffs in Kentucky’s bourbon sector and the looming EU tariffs on American alcohol. Holly Seidewand, owner of First Fill Spirits in Saratoga Springs, New York, expressed concern over the ripple effects.

“This ongoing tariff war doesn’t just hurt importers—it weakens domestic brands, disrupts distribution networks, and puts pressure on retailers that rely on global selections,” she said. “In the end, consumers will bear the cost.”

French industry leaders also fear the consequences. Gabriel Picard, head of the French Federation of Exporters of Wines and Spirits, warned that Trump’s proposed tariffs would be devastating.

“A 200% tariff would be a hammer blow to our industry,” Picard said. “The U.S. market accounts for 4 billion euros ($4.3 billion) in annual exports for French wines and spirits. If these tariffs are applied, not a single bottle will be shipped to the United States. All exports will come to a total standstill.”

France and EU Pledge to Fight Back

French officials have made it clear they will not back down. Laurent Saint-Martin, France’s minister for foreign trade, denounced Trump’s threats.

“Trump is escalating a trade war of his own making,” he wrote on X (formerly Twitter). “France, alongside the European Commission and our partners, is determined to respond. We will not give in to threats and will always defend our industries.”

Trump’s aggressive tariff stance could even harm companies that have previously supported him. French luxury goods giant LVMH, whose CEO Bernard Arnault attended Trump’s inauguration, could be severely impacted. LVMH’s brands—Moët & Chandon, Krug, Veuve Clicquot, and Hennessy—are all at risk of facing the proposed U.S. tariffs. Italian spirits company Campari, recently praised by the White House for considering a U.S. factory, may also suffer.

Trade War Expands Beyond Europe

Trump has made it clear that he intends to follow through on his tariff threats.

“Of course, I will respond,” he told reporters in the Oval Office on Wednesday.

In addition to the European tariffs, Trump recently imposed new steel and aluminum duties, arguing that other nations have “stolen” U.S. wealth. His trade war has drawn swift retaliation, with separate tariffs targeting Canada, Mexico, and China. He also plans to levy “reciprocal” tariffs on the EU, Brazil, and South Korea starting April 2.

The European Commission has responded with its own countermeasures. Von der Leyen announced that since the U.S. imposed tariffs worth $28 billion, the EU will introduce countermeasures worth 26 billion euros (about $28 billion). These tariffs will target not only steel and aluminum but also textiles, home appliances, and agricultural goods.

European Commission spokesman Olof Gill stated that the EU had been preparing for this trade dispute for over a year.

“We call on the U.S. to revoke the tariffs imposed yesterday and engage in negotiations to prevent future trade barriers,” he said. “Tariffs create a lose-lose situation, and we want to focus on win-win outcomes.”

U.S. Whiskey Makers Urge Compromise

Amid the escalating tensions, American whiskey producers are urging Trump to find a resolution.

“We encourage President Trump to reach a trade agreement with the EU to eliminate tariffs,” said Chris Swonger, president of the Distilled Spirits Council. “This will create U.S. jobs and boost manufacturing and exports for the American hospitality sector.”

The 2018 EU tariffs on U.S. whiskey, implemented in response to Trump’s previous trade measures, led to a 20% drop in exports to Europe by 2021. Trump's additional 25% tariffs on Canada and Mexico now threaten 31,000 jobs in the whiskey sector.

Uncertain Future for Global Trade

As trade tensions mount, the long-term effects remain unclear. With both sides refusing to back down, businesses, consumers, and investors may soon feel the economic impact of this escalating dispute.