Zinger Key Points
- Trump threatens 200% tariffs on European alcohol unless EU removes its 50% tariff on American whiskey.
- Brown-Forman shares rose 2% as potential tariff removal on American whiskey could boost its competitive advantage.
- Find out which stock just claimed the top spot in the new Benzinga Rankings. Updated daily— discover the market’s highest-rated stocks now.
U.S. President Donald Trump has reignited transatlantic trade tensions, threatening to impose a 200% tariff on all European wine and alcoholic products unless the European Union drops its 50% tariff on American whiskey.
The move, announced Thursday on Truth Social, sent ripples through the beverage industry, sparking market reactions across major alcohol producers.
Trump criticized the EU as "one of the most hostile and abusive taxing and tariffing authorities in the World" and accused the bloc of exploiting the U.S. economy.
He warned that unless the whiskey tariff was removed "immediately," the U.S. would retaliate with steep duties on "wines, champagnes, & alcoholic products coming out of France and other E.U. represented countries."
How Much Is At Stake?
The U.S. is a critical market for European alcohol producers, importing $14.2 billion worth of beverages, spirits, and vinegar from the EU in 2024, according to International Trade Center data.
Of that, $5.65 billion came from wine-related products, making American consumers a crucial revenue stream for European winemakers.
The U.S. market accounts for nearly a fifth of the EU's global wine exports, a dependence that makes Trump's tariff threat a significant economic concern for the industry.
French, Italian, and Spanish winemakers—who dominate EU exports to the U.S.—would face the brunt of the impact. French producers alone shipped more than $1.5 billion worth of wine to the U.S. last year.
On the other side, American whiskey producers like Brown-Forman Corporation BF BF—maker of Jack Daniel's—stand to gain if European tariffs are removed.
The trade dispute escalated after the European Commission announced plans on Wednesday to impose countermeasures on $28 billion worth of U.S. goods in response to blanket American tariffs on steel and aluminum. This retaliatory stance sets the stage for a renewed trade war, reminiscent of the tit-for-tat tariff battles of the Trump administration.
Market Reaction: European Alcohol Stocks Already Feel The Heat
Trump's tariff warning sent shockwaves through alcohol stocks, particularly European producers. Shares of Davide Campari Milano DVCMY tumbled 3.6% during European trading, while Rémy Cointreau SA REMYF, known for its premium cognacs, dropped nearly 4%. LVMH Moët Hennessy Louis Vuitton LVMHF, the owner of Moët & Chandon and Hennessy, slipped 1.5%.
The U.S. alcohol sector, however, showed mixed reactions. Shares of Constellation Brands STZ, which owns Robert Mondavi wines and Corona beer, remained flat in premarket trading in New York. Meanwhile, Brown-Forman, a direct beneficiary if European tariffs on whiskey are lifted, rose 2%.
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