Trump threatens 200% tariff on E.U. booze over tax on U.S. whiskey

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30. Trump threatens 200% tariff on European alcohol as trade war escalates

This is going to get nasty

Link to tweet

https://edition.cnn.com/2025/03/13/business/alcohol-tariffs-eu-trump-trade-war

President Donald Trump on Thursday threatened to impose a massive tariff on European alcohol in response to the European Union’s retaliation against his steel and aluminum tariffs – a tit-for-tat escalation of a trade war that could easily get out of hand.

In a post on Truth Social, Trump said his administration would impose a 200% tariff on alcoholic beverages from the EU unless it rescinds the 50% tariff the European government imposed Wednesday on US spirits.

“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 said. “This will be great for the Wine and Champagne businesses in the U.S.”

America’s response to Europe’s response to America’s tariffs in the span of 36 hours shows how trade wars can quickly spiral out of control. After Trump’s 25% tariffs on aluminum and steel went into effect at midnight Wednesday morning, the EU immediately retaliated against what it called an “unjustified” trade action from the Trump administration.

The EU’s countermeasures included tariffs on €26 billion ($28 billion) worth of American goods, including tariffs on boats, bourbon and motorbikes. The measures, which are set to go into effect in April, are “swift and proportionate,” the EU said in a statement.