President Trump escalated trade tensions with Europe Thursday by threatening a 200% tariff on French wines and other European alcoholic beverages if the EU doesn’t lift its 50% tariff on American whiskey. This latest move in ongoing trade disputes could significantly impact consumers, businesses and international relations.
“This will be great for the wine and champagne businesses in the U.S.,” Mr. Trump posted on social media, suggesting the move would protect domestic beverages despite not specifying when the tariff would take effect. His administration plans to impose reciprocal tariffs on various nations starting April 2.
The White House frames these measures as part of a necessary economic “detox period” that will ultimately benefit the U.S. by encouraging domestic production.
“I’m not going to bend at all,” Mr. Trump declared about his broader tariff strategy. Treasury Secretary Scott Bessent downplayed short-term market concerns, stating, “We want to protect the American worker.”
However, critics point out several potential problems. Unique products like Champagne, which by definition must come from a specific French region, cannot be replaced by domestic alternatives. Additionally, tariffs are paid by U.S. importers who typically pass costs to consumers, potentially raising prices significantly for American buyers.
Wall Street has responded negatively, with major indexes falling as investors express concerns about economic uncertainty and recession risks from these unpredictable trade policies.
French Foreign Trade Minister Laurent Saint-Martin called the move an escalation of a “trade war” that Mr. Trump “chose to unleash” and promised a coordinated European response. Industry group spiritsEUROPE criticized the proposal, questioning how targeting alcohol would resolve unrelated steel and aluminum disputes, and emphasized that both European producers and American supply chains would suffer.
The confrontation represents the latest chapter in Trump’s ongoing trade conflicts with Europe, China, and North American neighbors, with both sides appearing unwilling to back down.
Read more: Trump threatens to hit European Union with 200% tariff on wine, alcohol
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