Trump Warns Of 200% Tariff On French Champagne And EU Spirits In Retaliation To Europe's Tariff On US Whiskey

U.S. President Donald Trump has threatened to impose a 200% tariff on alcoholic products from the European Union, in response to a 50% tariff on whisky by the EU.

What Happened: On Thursday, Trump took to his Truth Social to express his dissatisfaction with the European Union, which he described as “one of the most hostile and abusive taxing and tariffing authorities in the World.” He claimed that the EU was formed with the sole purpose of exploiting the United States.

Trump’s post came in response to the EU’s recent decision to impose a 50% tariff on the U.S. bourbon. He warned that if the tariff is not immediately removed, the U.S. will retaliate by placing a 200% tariff on all wines, champagnes, and alcoholic products coming out of France and other EU countries.

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Why It Matters: Trump’s proposed tariff could significantly impact the European alcohol industry, particularly in France, a major exporter of wine and champagne. However, Trump believes this move would benefit the American alcohol industry. He stated in his tweet, “This will be great for the Wine and Champagne businesses in the U.S.”

The U.S. spirits industry began to witness a slowdown post-pandemic as consumers curtailed their drinking habits amid rising inflation. In January, Brown-Forman Corp, BF BF, the maker of Jack Daniel’s whiskey, even laid off close to 700 employees for cost-cutting.

Earlier, the Financial Times had reported that French champagne and Italian Parmigiano cheese are among the European delicacies that could be at risk if Trump decides to impose further tariffs on EU imports.

Alexandre Chartogne,  the owner of Chartogne-Taillet, which exports 30% of its annual output to the U.S., told the publication, "It's sad . . . If they close the borders to imports — if they place more tariffs — they will lose access to [this]." He added that they might decide to export elsewhere if the tariffs are imposed.

Meanwhile, Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), expressed discontent over the EU imposing 50% tariff on U.S. whiskey, as per a CNN report. He stated, "We urge the U.S. and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs."

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.