Trump Threatens 200% Tariff on European Alcohol After EU Retaliation

Donald Trump has reignited a trade war with the European Union, threatening to impose a 200% tariff on European wine, champagne, and other alcoholic beverages. His announcement came after the EU hit US-made goods with new tariffs in response to Trump’s latest trade policies.

The conflict started when Trump’s administration imposed a 25% tariff on steel and aluminum imports. The EU quickly fought back, slapping a 50% tariff on American spirits and other products. In response, Trump took to Truth Social, warning that if the EU does not drop its tariffs immediately, he will triple the tax on European alcoholic beverages coming into the US.

Trump framed his proposed tariff as a boost for American wine and champagne businesses, but industry experts worry that the escalating trade battle could cause economic damage on both sides.

The EU’s retaliation targets $28 billion worth of American products, including bourbon, motorcycles, and boats. These tariffs, set to take effect in April, are the EU’s way of responding to what it calls “unjustified” US trade policies. European leaders argue that Trump’s steel and aluminum tariffs unfairly hurt their industries, and they’re demanding that the US roll them back.

French officials have strongly criticized Trump’s aggressive stance, calling it an “escalation” of a trade war he started. France’s trade minister vowed to defend European industries and warned that they would not give in to threats. The EU Commission also urged the US to reverse its tariffs and instead negotiate a fair trade agreement.