Donald Tramp has warned he could hit the EU with 200% tariffs on wine as the US President threatens more trade war chaos.
Posting on Truth Social, he said: “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. 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 (Image: Getty)
Trump’s trade wars have sparked a sell off on Wall Street (Image: Getty)
His comments threaten to further escalate tensions between Brussels and Washington, which could unleash a full trade war.
The EU Trade Commission said it had nothing new to say in reply to Trump’s latest social media post.
“We have no new comment on the statement by President Trump,” a spokesman told the BBC. “But we can confirm that Commissioner Šefčovič reached out to his American counterparts immediately after the announcements yesterday, and calls are being prepared.”
Trump’s threat comes after the EU said it would raise its levies on up to €26bn (£22bn) worth of US goods, including boats, bourbon and motorbikes, from April 1.
This was in retaliation for the White House’s decision on Wednesday to widen US tariffs on steel and aluminium, imposing a blanket duty of 25% and ending exemptions that the US had previously granted for shipments from some countries.
Ursula von der Leyen, the European Commission President, justified the EU’s response, saying it was intended to be “strong but proportionate”.
She added that the EU stood “ready to engage in a meaningful dialogue” to try and resolve the growing crisis.
“Tariffs are taxes. They are bad for business and worse for consumers,” she said, warning the economic disruption put jobs at stake and would send prices higher.
“Nobody needs that – on both sides, neither in the European Union nor in the United States.”
The US is the world’s biggest wine market, even though consumption has been falling in recent years.
EU countries exported billions of euros worth of wine to America last year. Data from statista.com shows that by May 2024, the total value of European wine exports to the US came to €13.75 billion.
Italy, one of the largest of these exporters, said earlier in March that US tariffs of just 25% could wipe close to €1bn (£830m) off the value of its wine exports globally.
The escalation in the trade war has rattled financial markets around the world, with stocks of alcohol companies falling in response to the news.
