US President Donald Trump announced plans to impose a 200% tariff on French Champagne and other alcoholic beverages from the European Union, according to CNBC.
The threat comes in response to the EU’s decision to impose a 50% import tax on American whiskey, a move Trump described as “hostile and abusive.”
Trump took to his social media platform, Truth Social, to declare his intentions:
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.
The EU’s decision to tax American whiskey follows years of simmering trade tensions between the US and Europe. Trump’s administration has frequently criticised the EU for what it perceives as unfair trade practices, including high tariffs on US goods and subsidies for European industries.
If implemented, the 200% tariff would significantly increase the cost of European wines, Champagnes, and spirits in the US market, potentially making them prohibitively expensive for American consumers. However, the move could benefit domestic producers of wine and Champagne.
Trump’s latest threat is part of a broader pattern of using tariffs as a tool to address trade imbalances and pressure other countries to change their policies. The EU now faces a critical decision: whether to stand firm on its whiskey tariff or negotiate with the US to de-escalate the situation.
