Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Trump threatens retaliatory 200% tariff on European wine after EU proposes American whiskey tax

WASHINGTON (AP) — President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.

The European import tax, which was unveiled in response to steel and aluminum tariffs by the U.S. administration, is expected to go into effect April 1, just ahead of separate reciprocal tariffs that Trump plans to place on the EU.

But Trump, in a morning social media post, vowed a new escalation in his trade war if the EU goes forward with the planned 50% tax on American whiskey.

“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,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”

European Commission President Ursula von der Leyen said Thursday that the EU trade commissioner would be having a phone call Friday with his U.S. counterpart.

“We don’t like tariffs because we think tariffs are taxes and they are bad for business and they are bad for consumers," she said. "We have always said at the same time that we will defend our interests. We’ve said it, and we’ve shown it, but at the same time I also want to emphasize that we are open for negotiations.”

The U.S. president has defined his opening weeks in the White House with near daily drama regarding tariffs, saying that taxing imports might cause some economic pain but would eventually lead to more domestic manufacturing and greater respect for America. The S&P 500 stock index fell 1.4% on Thursday, while European alcohol stocks also tumbled.

But with the EU and Trump now tussling over alcohol tariffs, the impact of a trade war could surface directly in ways consumers could quickly see. It's unclear how the import taxes would be absorbed among vintners, distillers, brewers, distributors, retailers and consumers.

Because of Trump's threat, a previously untariffed $15 bottle of Italian Prosecco could possibly increase in price to $45. Similarly, Europe's response to Trump's steel and aluminum tariffs means that the cost of a 30-euro bottle of bourbon in Paris could increase to 45 euros.

Holly Seidewand, owner of First Fill Spirits, a shop in Saratoga Springs, New York, said before Trump threatened the tariffs on European alcohol, the spirits industry was already reeling from layoff announcements in the Kentucky Bourbon sector and the tariffs planned by the EU on American spirits.