Trump Threatens 200% Tariffs on European Spirits

Trump voiced his anger in a post on his Truth Social platform, accusing the EU of being "one of the most hostile and abusive taxing and tariffing authorities in the world." He further claimed the EU was created in 1993 to economically exploit the United States.

When questioned at the White House about whether he might reconsider his tough stance on tariffs against U.S. allies, Trump remained firm, saying, “We’ve been ripped off for years, and we’re not going to be ripped off anymore. No, I’m not going to bend at all — aluminum or steel or cars.”

In recent weeks, Trump has engaged in a series of tit-for-tat tariff battles with major trading partners, including Mexico, Canada, China, and the EU, framing the tariffs as part of an effort to combat drug trafficking, particularly fentanyl, and to bring more manufacturing jobs back to the U.S.

Earlier this week, Trump imposed 25% tariffs on steel and aluminum exports from 35 countries, including the EU. In response, Europe retaliated with tariffs on $28 billion worth of U.S. goods, targeting products from politically significant states, including Kentucky’s bourbon and Tennessee’s whiskey. Canada also imposed tariffs on $20.7 billion in U.S. goods and requested World Trade Organization dispute consultations over U.S. import duties on Canadian steel and aluminum.

Trump’s latest threats have put spirits producers in the crossfire. The European Union’s new tariffs on U.S. exports have impacted not only steel and aluminum but also textiles, home appliances, agricultural goods, and liquor, including bourbon and whiskey.

Chris Swonger, President of the Distilled Spirits Council of the United States, expressed disappointment, warning that the EU’s move could severely harm the U.S. spirits industry in Europe, where exports of U.S. whiskey surged 60% in the past three years after earlier tariffs were lifted.

“The U.S.-EU spirits sector has been a model for fair trade with zero-for-zero tariffs since 1997,” Swonger said. “We want toasts, not tariffs.”

Despite the escalating trade tensions, Treasury Secretary Scott Bessent downplayed concerns over market volatility, dismissing the potential impact of Trump’s threatened tariffs on European spirits. "One or two items with one trading bloc — I'm not sure why that's a big deal for the markets," Bessent said.

In his social media post, Trump warned that if the EU follows through on the 50% tariff on U.S. whiskey, he would retaliate with a 200% tariff on “all wines, champagne & alcoholic products coming out of France and other EU countries.” He argued this would benefit the U.S. wine and champagne industries.

Trump also criticized The Wall Street Journal for opposing his tariff strategy, calling its editorial stance “antiquated” and accusing the publication of being influenced by the European Union’s agenda.

As tensions continue to rise, the dispute over tariffs remains a significant factor in the U.S.-EU trade relationship, with both sides bracing for the potential long-term economic effects.