WASHINGTON, USA – President Donald Trump has threatened to impose a sweeping 200% tariff on wine, champagne, and other alcoholic imports from the European Union in response to the bloc’s recently announced 50% tariff on U.S. whiskey.
The move marks the latest escalation in an ongoing trade dispute between the two economic powerhouses.
In a statement posted on Truth Social on Thursday, March 13, 2025, Trump sharply criticised the EU, accusing it of unfair trade practices and describing it as “one of the most hostile and abusive taxing and tariffing authorities in the World.”
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” Trump wrote.
“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.”
Shortly after, Trump continued his criticism, declaring, “The U.S. doesn’t have Free Trade. We have ‘Stupid Trade.’ The Entire World is RIPPING US OFF!!!”
Economic Fallout and Industry Concerns
The potential tariffs could have significant economic implications, particularly for U.S. consumers, who rely heavily on European wine and spirits imports.
The U.S. is the world’s largest importer of both wine and champagne, with the former accounting for $4.9 billion in annual sales and the latter over $1.7 billion.
By contrast, American exports of these products are relatively small, with wine exports ranking fifth globally at about $1 billion and sparkling wine and champagne exports trailing at just $67 million, ranking 12th.
Industry groups have expressed alarm over the mounting trade tensions.
The Distilled Spirits Council of the United States urged Trump to negotiate a resolution with the EU rather than impose retaliatory tariffs.
“We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs,” said Chris Swonger, President and CEO of the Distilled Spirits Council.
Tit-for-Tat Tariffs and Global Trade Disruptions
Trump has made aggressive tariff policies a cornerstone of his second administration’s economic strategy, targeting long-standing trade partners, despite opposition from businesses and economists who warn of rising costs for consumers.
His latest threats come just one day after his administration imposed broad tariffs on all steel and aluminium imports into the U.S., triggering retaliatory measures from both the EU and Canada.
European trade officials have indicated that they are in discussions with their U.S. counterparts but have yet to announce whether they will reconsider their whiskey tariff in light of Trump’s warning.
Commerce Secretary Howard Lutnick defended Trump’s response, suggesting that the EU’s move deliberately targeted industries in Republican-leaning states.
“The President was totally annoyed that the Europeans did this, and so you’re going to hear back from someone who emotionally cares about America,” Lutnick said in an interview with Bloomberg Television.
“And why are Europeans picking on Kentucky bourbon, Harley-Davidson motorcycles? It’s disrespectful.”
Lutnick added that Trump’s approach was intended to restore “balance” in transatlantic trade relations.
“We are your largest, most important trading partner. Treat us with respect, and let’s get a little balance,” he said.
Market Reaction and Economic Uncertainty
Financial markets have reacted negatively to Trump’s aggressive trade measures.
Major stock indexes, which had surged following his re-election, have now erased much of their post-electoral gains as investors fear the economic consequences of escalating trade disputes.
On Thursday, U.S. stock futures dropped sharply after Trump’s tariff announcement, though losses were partially offset by a better-than-expected inflation report.
Economists caution that prolonged trade conflicts could weigh on consumer prices and economic growth.
Many academics argue that access to cheaper imports has historically boosted U.S. living standards and industrial efficiency.
However, Trump has long contended that the nation’s trade deficit is a sign of economic weakness, and he has remained steadfast in his belief that imposing tariffs will ultimately strengthen the American economy.
As tensions with the EU continue to mount, trade negotiations will be closely watched for any signs of compromise.
However, with Trump showing no signs of backing down, the prospect of further economic disruption looms large.
