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President Donald Trump announced on Thursday (March 13) a potential 200% tariff on European wines, champagnes, and other alcoholic products. This move comes in response to the European Union's (EU) recent decision to impose a 50% tariff on U.S. whiskey and other American goods. The EU's action was a retaliation against Trump's tariffs on steel and aluminum, which took effect earlier this week.
In a post on Truth Social, Trump stated that if the EU does not remove its tariffs immediately, the U.S. will proceed with the 200% tariff on alcohol imports from France and other EU countries. Trump emphasized that this measure would benefit American wine and champagne businesses. According to CNN, the EU's countermeasures target $28 billion worth of American goods, including boats, bourbon, and motorbikes, and are set to take effect in April.
The escalating trade tensions have raised concerns among businesses and consumers on both sides of the Atlantic. French Trade Minister Laurent Saint-Martin criticized Trump's actions, stating that France would "fight back" and protect its industries. The EU Commission's trade spokesperson, Olof Gill, urged the U.S. to revoke the steel and aluminum tariffs, advocating for negotiation to avoid further tariffs.
Alcoholic beverages are a significant export from the EU to the U.S., with France shipping nearly 27 million bottles of champagne to the U.S. in 2023.
As the situation develops, both sides are preparing for potential negotiations to resolve the trade dispute. However, Trump has indicated that he is not planning to end his tariff strategy soon, despite pushback from Wall Street and international trade partners.