US President Donald Trump meets with Irish Taoiseach Micheál Martin and his wife Mary O'Shea during a St Patrick's Day event in the East Room of the White House on March 12. Photo / AFP
US President Donald Trump meets with Irish Taoiseach Micheál Martin and his wife Mary O'Shea during a St Patrick's Day event in the East Room of the White House on March 12. Photo / AFP
US President Donald Trump threatened 200% tariffs on EU wine and alcohol in response to EU levies on US whiskey.
France vowed to retaliate against any tariffs, with Foreign Trade Minister Laurent Saint-Martin stating, “We will not give in to threats.”
The trade tensions have caused market uncertainty, with US stocks opening lower on Thursday.
US President Donald Trump on Thursday threatened to impose 200% tariffs on wine, champagne and alcoholic products from European Union countries, in retaliation against the bloc’s planned levies on US-produced whiskey.
Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.
His latest salvo was a response to the European Union’s unveiling of tariffs on US$28 billion in US goods, starting in stages from April.
The EU measures – including a sharp tariff hike on American whiskey – were in turn retaliation against Trump’s levies on steel and aluminium imports that took effect Wednesday.
“If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES,” Trump posted on Thursday on his Truth Social platform.
Trump also renewed his harsh criticism of the bloc, singling out its 50% levy on US whiskey as “nasty”.
He termed the EU “one of the most hostile and abusive taxing and tariffing authorities in the World” and said the union – which for decades has been at the heart of a US-led Western alliance – “was formed for the sole purpose of taking advantage of the United States”.
France swiftly responded that it would fight back against any tariffs on wine and alcohol.
“We will not give in to threats,” Foreign Trade Minister Laurent Saint-Martin said Thursday on X. He added that France was “determined to retaliate”.
French wine rests on the rack for sale at Total Wine & More in Laurel, Maryland. Photo / AFP
US Commerce Secretary Howard Lutnick told Bloomberg Television on Thursday that he had plans to speak with his European counterparts, without providing further details.
An EU spokesperson told AFP its trade chief has reached out to Washington.
The EU earlier said it deeply regrets the US introduction of steel and aluminium tariffs, with spokesman Olof Gill adding that it would feel the same about any future measures and urging Washington to revoke the duties.
‘Fed up’
French wine and spirit exporters were angered at being put in Trump’s line of fire, their federation said.
“We are fed up with being systematically sacrificed for issues unrelated to our own,” Nicolas Ozanam, the director general of the federation, known by the acronym Fevs, said.
US distillers have called the EU’s levy on American whiskey “deeply disappointing”.
“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” said Distilled Spirits Council head Chris Swonger in a Wednesday statement.
A 2018 imposition of similar tariffs led to a 20% drop in American whiskey exports to the European Union.
Trump’s tariff wars have taken aim at Canada, Mexico and China over allegations they are not doing enough to curtail fentanyl smuggling or illegal immigration into the United States – even if in the case of Canada the border sees negligible levels of smuggling.
He has also taken aim at specific commodities, including steel, aluminium and copper.
Some countries have already imposed retaliatory tariffs on the United States in response to Trump’s moves.
China vowed “all necessary measures” in response to the United States, and has already imposed duties of 10% and 15% targeting US agriculture products like soybeans and chicken.
Uncertainty over Trump’s trade plans and worries that they could trigger a recession have roiled financial markets. US stocks opened lower on Thursday, following the lead of Asian markets, although European markets rose.
US Treasury Secretary Scott Bessent played down recent market volatility, telling CNBC Thursday he was focused on the longer-term and stressing that Washington’s plans also included deregulation and “reprivatising”.
