Trump threatens 200% tariff on European alcohol amid escalating trade war

U.S. President Donald Trump threatened Thursday to impose a massive 200% tariff on European alcohol products if the European Union doesn’t rescind its planned 50% tariff on American spirits, dramatically escalating a trade dispute that began with U.S. steel and aluminum tariffs.

“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 wrote on Truth Social. “This will be great for the wine and champagne businesses in the U.S.”

The rapid-fire escalation began when Trump’s 25% tariffs on aluminum and steel went into effect at midnight Wednesday. The EU immediately announced retaliatory measures of $28 billion worth of American goods, including tariffs on bourbon and other spirits, calling the U.S. tariffs “unjustified.”

Trump signaled his intention to respond while meeting with Ireland’s Taoiseach Micheál Martin in the Oval Office Wednesday, telling reporters, “Of course I will respond.”

In his social media post Thursday, Trump called the EU “one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for taking advantage of the United States.”

The proposed European tariffs on American spirits are scheduled to take effect in April, part of a broader package of countermeasures the EU described as “swift and proportionate.”

American distillers alarmed as they caught in crossfire

American distillers, particularly bourbon producers in states like Kentucky and Tennessee that voted for Trump, expressed alarm at being caught in the crossfire.

“The U.S.-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997,” said Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS).

“We urge President Trump to secure a spirit agreement with the EU to get us back to zero for zero tariffs. We want toasts, not tariffs.”

The impact could be significant on both sides of the Atlantic. EU wine exports to the United States were worth 4.9 billion euros last year, according to EU statistics agency Eurostat, representing 29% of the EU’s overall wine exports. France accounted for almost half of those exports, with Italy making up nearly 40%.

The Unione Italiana Vini, representing Italian winemakers, predicted Trump’s tariffs could cost their industry €1 billion ($1.1 billion).

This marks the second time U.S. spirits have been targeted by retaliatory tariffs during Trump’s presidencies. Canada recently imposed tariffs on Kentucky Bourbon, with some Canadian retailers pulling American-made spirits from shelves in response to Trump’s trade actions against that country.

Beyond the alcohol dispute, Trump has threatened additional “reciprocal” tariffs scheduled for April 2 targeting imports from the EU, Brazil, South Korea, Mexico, and China, further raising concerns among investors about potential economic impacts.

“The U.S. doesn’t have Free Trade. We have ‘Stupid Trade,'” Trump wrote Thursday. “The Entire World is RIPPING US OFF!!!”

While the European Commission said it remains open to negotiations, calling higher tariffs “in no one’s interest,” the rapid tit-for-tat escalation demonstrates how quickly trade disputes can spiral, with experts warning of potential broader economic consequences if the cycle continues.