Trump threatens mega 200 percent tariff on EU wines and spirits

U.S. President Donald Trump on Thursday threatened to slap a 200 percent tariff on all “wines, champagne and alcoholic products” from France and other EU countries.

The threat comes after the White House put global tariffs on steel and aluminum, with the EU readying retaliatory tariffs of its own in what threatens to escalate into a full-scale transatlantic trade war.

In his post on Truth Social, Trump claimed the EU “put a nasty 50 percent tariff on whisky,” even though the EU’s tariff on U.S. bourbon will only kick in from April 1.

“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.” Trump said.

France, Italy and Spain would be hardest hit by the 200 percent mark-up.

French agriculture minister Annie Genevard told POLITICO that “France and the EU do not want a trade war with the United States, like the one that President Trump has initiated.” She added, however, that Europe “will react firmly to safeguard the interests of their companies in the face of arbitrary measures that violate international law.”

The EU does not import a significant amount of wine from the United States. Even though some U.S. producers call their sparkling wines “champagne,” the bubbly drink can legally only be produced in the Champagne region of France.

Market closed

Europeans reacted with horror to the early-morning missive from Trump, who is a teetotaler.

“This would de facto close the U.S. market for EU wine makers,” said Ignacio Sánchez-Recarte, who leads the European Committee of Wine Companies, or CEEV. “For any wine producer in Europe, the U.S. will be their biggest market. And there is no alternative” in size, nor in income levels.

Pauline Bastidon of spiritsEUROPE, another drinks industry group, said she was “deeply alarmed” by the renewed threat of tariffs. “This cycle of tit-for-tat retaliation must end now!” she said. “We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us.”

Trump’s prohibitive tariffs on European booze marked his second trade escalation in two days — and there are more trigger points to come.

The first round of EU retaliation kicks in on April 1, with Trump’s plan for wide-ranging “reciprocal” tariffs slated for the following day. A bigger batch of EU measures would follow April 13. The EU considers the U.S. steel and aluminum tariffs unjustified and illegal, and its $28 billion total in retaliatory tariffs are intended to match their cost.

Disrespectful

U.S. Commerce Secretary Howard Lutnick called the EU’s retaliation “disrespectful” in an interview Thursday morning on Bloomberg TV, and said, “If you make him unhappy, he responds unhappy.”

Lutnick said that plans for tit-for-tat tariff hikes show you that “Europe and Canada do not respect Donald Trump, and do not respect America’s ability to build its steel and aluminum industry, which is vital for national security.”

“Whereas you watch Mexico and you watch the U.K. be pragmatic and thoughtful, and the way we’re going to deal with them is going to be better,” he added.  

European Commission spokesperson for trade Olof Gill said Commissioner Maroš Šefčovič “reached out to his American counterparts immediately after the announcements yesterday, and calls are being prepared.”

For now, Brussels is keeping calm … and having another drink.

“Remaining calm, united and determined is the only solution,” said Marie-Pierre Vedrenne, a French lawmaker who sits on the European Parliament’s trade committee.

“Dear President Trump. No need to worry. We’ll drink our own wine,” tweeted Kathleen Van Brempt, a Belgian lawmaker who is also on the trade committee. 

This story has been updated.