Trump Threatens 200% Tariff on European Alcohol Amid Escalating Trade Dispute
- simpleisgd
- Mar 14
- 1 min read
President Donald Trump has threatened to impose a 200% tariff on wine, champagne, and other alcoholic beverages from France and the European Union (EU) in response to the EU’s planned tax on American whiskey. This move is seen as retaliation for Trump’s steel and aluminum tariffs. Trump argued that the tariff would benefit U.S. wine and champagne businesses.
EU's Retaliation and Market Impact
The announcement caused European alcohol stocks to drop, with companies like LVMH, Rémy Cointreau, and Pernod Ricard losing value. France's trade minister, Laurent Saint-Martin, responded by accusing Trump of escalating the trade war, stating that France would protect its industries.
EU Countermeasures
In retaliation, the EU plans to impose tariffs on up to €26 billion worth of U.S. products, including agricultural and industrial goods. These tariffs could reach 25% and are expected to be finalised by mid-April.
Trump's Broader Trade Strategy
Trump’s tariff threat is part of a broader strategy targeting industries like automobiles, pharmaceuticals, and semiconductors. He is also preparing to impose "reciprocal duties" on countries with high trade barriers, further intensifying the global trade standoff.
Economic Impact
The trade tensions have already led to a nearly 10% drop in the S&P 500, raising fears of a recession. Despite this, Trump has dismissed the market drop as a "buying opportunity," aiming to reshape U.S. industries.
Conclusion
As the U.S. and EU remain at odds, the global economy is bracing for more fallout. With both sides standing firm, it’s clear that this trade dispute is far from over.
