President Donald Trump on Thursday threatened European countries with a 200% tariff on wine, champagne and other alcoholic products from France and the European Union as U.S. booze makers urged free trade.
Trump’s latest tariff threat comes in response to a planned European tariff on American whiskey.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” Trump wrote in a morning post on Truth Social. “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. This will be great for the Wine and Champagne businesses in the U.S.”
Trump also made clear his feelings about the existing trade environment as he prepares to impose reciprocal tariffs on all nations that charge tariffs on U.S. products starting April 2.
“The Entire World is RIPPING US OFF!!!”
American spirit makers don’t want any tariffs and said shifting regionally-renowned products to other places doesn’t make sense.
Distilled Spirits Council President and CEO Chris Swonger called the latest trade threats disappointing.
“For the past three years that the EU’s 25% tariff on American Whiskey has been suspended in the steel and aluminum dispute, U.S. distillers have worked hard to regain solid footing in our largest export market,” he said. “The EU’s announcement to reimpose these tariffs on American Whiskey at 50% on April 1 is deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries.”
Other business groups, including the U.S. Chamber of Commerce and American Farm Bureau Federation, have urged Trump to back off tariff threats, which has become the president’s go-to tool for addressing trade issues.
Swonger said the U.S. and EU spirits sectors have had fair and reciprocal zero-for-zero tariffs between 1997 and 2018 while trade in spirits increased by nearly 450%.
“Many spirits products are recognized as ‘distinctive products’ by the U.S. and EU and can only be made in their designated countries,” Swonger said. “As a result, the production of these spirits products, including Bourbon, Tennessee Whiskey, Cognac and Irish Whiskey, cannot simply be moved to another country or region.”
He urged leaders in Europe and the U.S. to work toward free trade deals.
“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” Swonger said. “We urge the U.S. and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs. This is a model that has allowed spirits exports between the U.S. and EU to flourish and is in line with President Trump’s vision for fair and reciprocal trade.”
Tariffs are taxes charged on imported products. The company importing the products pays the tariffs and can either try to absorb the loss or pass the additional costs on to consumers.
