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Trump Threatens 200% Tariff on European Alcohol in Retaliation for EU Whiskey Levy

The U.S. president's proposed tariffs escalate a trade dispute following the EU's planned 50% tax on American whiskey.

Bottles of French wine are displayed for sale in a liquor store.

Overview

  • President Donald Trump announced plans for a 200% tariff on wine, champagne, and spirits from the European Union if the EU does not remove its 50% tariff on American whiskey, set to take effect on April 1.
  • The European Union's whiskey tariff is a response to the U.S.'s recent imposition of 25% tariffs on steel and aluminum imports from the EU and other trading partners.
  • Economic analysts warn that the escalating trade tensions could harm global markets, with European alcohol producers already experiencing stock declines and U.S. businesses fearing higher costs for consumers.
  • Industry groups, including the Distilled Spirits Council of the United States, have expressed concerns about the impact of tariffs on both sides, urging a return to zero-for-zero tariff agreements to support jobs and trade growth.
  • European officials, including France's trade minister and the European Commission president, have condemned Trump's move, describing it as an escalation of the trade war and emphasizing their commitment to protecting EU industries.