- Trump threatens a 200% tax on EU alcohol
- New tariffs are being added on imports and metals
- The EU taxed U.S. whiskey, causing sales to drop
U.S. President Donald Trump has threatened to impose a 200% tariff on alcohol coming from the European Union (EU), escalating the ongoing trade conflict.
Trump made this threat after the EU announced plans to tax U.S.-made whiskey in retaliation for U.S. tariffs on steel and aluminum imports. He demanded that the EU remove the whiskey tariff immediately, calling the EU “nasty,” “hostile,” and “abusive,” accusing it of exploiting the U.S.
A spokesperson for the European Commission said talks are being arranged between U.S. and EU officials to address the issue. The EU’s trade commissioner, Maroš Šefčovič, has already reached out to U.S. representatives after Trump’s threat.
Trump posted on Truth Social that the tariff on EU alcohol would be “great for the Wine and Champagne businesses in the U.S.”
This new threat adds to the ongoing trade war, which has caused concerns about its impact on economies worldwide, including the U.S. Earlier, Trump imposed a 25% tax on goods from Mexico and Canada and raised tariffs on Chinese imports to at least 20%. His steel and aluminum tariffs started on Wednesday, with a 25% duty on imports from countries like the EU and Canada.
Trump has also indicated he may impose more tariffs, with plans for country-specific taxes and potential new taxes on products like copper, lumber, and cars.
Canada and European leaders have called these tariffs unfair and retaliated with their own tariffs on U.S. products.
Trump warned on Wednesday that he would respond to these moves. White House officials blamed the EU for making the situation worse. Commerce Secretary Howard Lutnick said the EU’s actions, like targeting Kentucky bourbon and Harley-Davidson motorcycles, are disrespectful.
Treasury Secretary Scott Bessent argued that the trade conflict would hurt the EU more than the U.S., and downplayed concerns about its impact on markets.
This dispute over alcohol is similar to a previous one when Trump first imposed tariffs on steel and aluminum. The EU retaliated with a 25% tax on American whiskey, causing whiskey sales to drop by 20%. The two sides later reached an agreement and lifted the tariffs, but Trump ended the carve-out on Wednesday and seems uninterested in negotiating a deal now.
