Trump Threatens 200% Tariffs on European Alcohol in Escalating Trade Dispute

The proposed tariffs on wine, champagne, and spirits follow EU's retaliatory levies on American whiskey, intensifying a transatlantic trade conflict.

President Trump announced a potential 200% tariff on European alcoholic beverages, including wine, champagne, and spirits, in response to the EU's 50% tariff on American whiskey.
The U.S. is the largest export market for European wines and spirits, with French champagne alone accounting for close to 30 million bottles shipped annually to the U.S., valued at €810 million in 2023.
European producers, from French winemakers to Spanish sherry and Italian prosecco producers, warn that such tariffs could devastate their industries, jeopardizing hundreds of thousands of jobs and years of market development.
Industry leaders and analysts criticize the escalating trade war, with some urging the European Commission to negotiate reductions in transatlantic tariffs to avoid further economic fallout.
American distributors and consumers, heavily reliant on European imports, could face significant price increases, raising concerns about long-term market disruptions.