Donald Trump has threatened to impose a 200% tariff on European alcohol, including wine and champagne, unless the EU removes what he calls a “nasty” 50% tax on American whiskey. In a post on Truth Social, Trump accused the EU of being one of the “most hostile and abusive taxing authorities” and claimed it was “formed for the sole purpose of taking advantage of the United States.”
The EU imposed the whiskey tariff in response to Trump’s earlier decision to place a 25% tax on European steel and aluminum. European Commission President Ursula von der Leyen defended the countermeasure, stating it was a “strong but proportionate” response to U.S. tariffs affecting $28 billion worth of EU goods. She warned that escalating the trade war would harm businesses and consumers on both sides of the Atlantic.
Von der Leyen urged the U.S. to negotiate, saying the EU is open to discussions but will move forward with its own tariffs, set to take effect on April 1 and expand further by April 13. She argued that raising taxes on essential imports disrupts global supply chains and could lead to job losses in both regions.
With tensions already high from Trump’s ongoing trade disputes with Canada, analysts warn that a tariff battle with the EU could further destabilize global markets. Whether negotiations will de-escalate the situation or push both sides into a full-blown trade war remains to be seen.
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