Trump escalates trade tensions with EU, proposes 200% tariff on wine,champagne, alcohols

President Trump has again turned to tariffs as a weapon in international trade disputes, this time threatening a hefty 200 percent levy on wine, champagne, and other alcoholic products from the European Union.

His latest salvo was a response to the European Union's unveiling of tariffs on $28 billion in US goods, to be imposed in stages starting in April.

The EU measures - including a 50 percent tariff on American whiskey - were a tit-for-tat measure against Trump's levies on steel and aluminum imports that took effect Wednesday.

 "If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES," Trump posted on his Truth Social platform.

French, US producers react
French producers say the tariffs could result in a dramitc increase in the price of French champagne and spirits in the US

One French wine and champagne company - Taittinger - said a 200 percent tariff could bring the cost of some bottles from about $60 to more than $180.

France's federation of wine and spirit exporters, known by the acronym FEVS, put the blame on the European Commission for placing its members "directly into the crosshairs of the US president".

"We are fed up with being systematically sacrificed for issues unrelated to our own," said the group's director general Nicolas Ozanam.

French Foreign Trade Minister Laurent Saint-Martin, for his part, said France would not give in to threats. “We will not give in to threats,” he declared on X, stating that France is“determined to retaliate".

American distillers are also dismayed by the EU's planned levy on US whiskey.

Chris Swonger, head of the Distilled Spirits Council, called the tariffs “deeply disappointing,” warning that reimposing such measures could hurt US distillers and farmers.

A similar tariff in 2018 resulted in a 20 percent drop in American whiskey exports to Europe.

US Commerce Secretary Howard Lutnick told Bloomberg Television he plans to speak with European officials, though details remain unclear.

Trump and Europe
Since taking office, Trump has engaged in multiple trade battles, using tariffs to pressure both rivals and allies alike.

His latest move follows the EU's decision to impose levies on $28 billion worth of US goods, rolling out in phases from April.

Those measures – including a sharp tariff hike on American whiskey – are themselves in response to Trump's recently implemented duties on steel and aluminium imports.

Wider trade conflicts

Trump's tariff wars have not been limited to the EU.

Canada, Mexico, and China have all been targeted, with tariffs imposed on goods like steel, aluminium, and copper.

China, in particular, has retaliated with duties of up to 15 percent on US agricultural products such as soybeans and chicken, vowing “all necessary measures” in response.

Meanwhile, financial markets remain on edge over the uncertainty of Trump's trade policies.

Despite the turbulence, US Treasury Secretary Scott Bessent downplayed concerns, maintaining that Washington remains focused on long-term economic strategies, including deregulation and privatisation.