San Francisco Frontiers - Trump threatens huge tariffs on European wine, other alcohol

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 in response to Wednesday's unveiling by the European Union of tariffs on $28 billion in US goods in stages from April -- measures that in turn retaliated against Trump's earlier levies against steel and aluminum imports.

"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," Trump posted Thursday on his Truth Social platform.

Trump also renewed his harsh criticism of the bloc, singling out a 50 percent 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 it "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."

- 'Fed up' -

French wine and spirit exporters, however, 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.

In comments made before Trump's Thursday threats, EU trade spokesman Olof Gill said the bloc was "prepared" for the situation.

"We are prepared for whatever might come and we have been preparing for over a year," he said. "I do want to emphasize... that we deeply regret the introduction of tariffs on steel and aluminum imports yesterday."

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 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 statement on Wednesday.

A 2018 imposition of similar tariffs led to a 20 percent drop in American whiskey exports to the European Union.

The lifting of that measure in 2021 saw US whiskey exports surge by nearly 60 percent to $699 million in 2024, industry data showed.

It was not immediately clear what legal justification Trump would rely on to hike tariffs on European alcohol.

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, aluminum and copper.

Some countries, much like the EU, have imposed retaliatory tariffs on the United States in response to Trump's moves to address what he terms unfair trade imbalances.

China has vowed "all necessary measures" in response to US measures, and has already imposed duties of 10 percent and 15 percent targeting US agriculture products ranging from soybeans to chicken.

European Commission chief Ursula von der Leyen on Wednesday maintained that the EU's retaliation, affecting products ranging from bourbon to motorbikes, was "strong but proportionate."

V.Perez--SFF