Trump Threatens Massive Tariff On EU Targeting Champagne And Alcohol

US President Donald Trump has warned that he might slap a hefty tariff on European alcoholic drinks as a countermeasure to the European Union’s response to his tariffs on steel and aluminum.

In the most recent heightening of worldwide trade disputes, Trump declared that his government would apply a 200% tariff on alcoholic drinks imported from the EU unless it withdraws the 50% tariff that the European authorities introduced on Wednesday targeting US spirits.

This U.S. tariff follows the European Union’s decision to bring back an import duty on American whiskey.

On Tuesday, the European Commission, which serves as the EU’s executive arm, revealed that it was responding to U.S. tariffs on steel and aluminum by reinstating previously suspended taxes on U.S. products, such as whiskey, while also adding new ones. These adjustments are set to begin in April.

“The European Union must act to safeguard consumers and businesses. The countermeasures we take today are strong but proportionate,” Ursula von der Leyen, president of the European Commission, stated on Tuesday.

Commerce Secretary Howard Lutnick remarked on Thursday during a Bloomberg Television interview that Trump was “totally annoyed” by the EU’s moves, prompting this latest warning.

The U.S. still intends to unveil another set of what are termed reciprocal tariffs in April. European nations are likely to feel the effects of those actions too.

“Their tariffs are way up here, and our tariffs are down here. How about: Relax. Let us balance it,” Lutnick commented on Thursday regarding the EU.

The news on Thursday seemed to weigh on European liquor stocks, which had already been facing challenges lately.

Paris-traded shares of LVMH Moet Hennessy Louis Vuitton, the world’s biggest luxury brand conglomerate, led by billionaire Bernard Arnault, Europe’s wealthiest individual, declined for a ninth consecutive day on Thursday and have fallen 14% since late February. Remy Cointreau slipped for a third day, with its losses nearing 11% over that period. Pernod Ricard also softened for a third day, down over 6% since the close of trading on Monday.

The trade conflict seems to have impacted U.S. alcohol stocks as well. Shares of Brown Forman, the parent company of Jack Daniels, have dropped more than 7% this week.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli