The European Union (EU) and the United States could be embroiled in a new escalation of the trade war, with a threat from U.S. President Donald Trump to impose a 200% tariff on all wines and other alcoholic beverages coming from the European bloc. This measure would respond to the EU's plans to reactivate customs duties on U.S. whiskey, which were in place during Trump's first term.
Representatives of the alcoholic beverage industry in both regions have expressed their concern over the devastating effects this tariff escalation could have. Specifically, the European wine sector would be severely affected, as wine is the main alcoholic beverage exported by the EU to the United States.
According to data from the European Commission, nearly 10% of all wine produced in the EU, with 80% of it made in Spain, France, and Italy, is destined for exports to the U.S. Since Trump assumed his second term, he has taken an aggressive stance in favor of imposing tariffs on imports from several trading partners of the United States.
In a message on his social media platform Truth Social, Trump mentioned that the 200% tariff on wines and champagnes from France and other EU countries would be applied if the EU does not immediately eliminate taxes on U.S. whiskey. The president argued that this measure would be beneficial for the wine and champagne industry in the United States and accused the EU of intending to exploit the U.S.
Trump's threat comes after the EU announced countermeasures to tariffs imposed by Washington on steel and aluminum exported from the European bloc. Brussels justified its decision to tax U.S. imports as a way to correct what it considers unfair trade deficits, attract foreign investment, or exert pressure on issues like immigration and fentanyl trafficking.
