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U.S. President Donald Trump has intensified a burgeoning trade conflict with the European Union, warning of a hefty 200% tariff on all EU alcohol imports in a bold escalation announced Thursday. This aggressive stance is a direct rebuttal to the EU’s proposed 50% tax on American whiskey, a retaliatory step tied to Trump’s earlier decision to impose tariffs on steel and aluminum entering the United States.
In a sharply worded statement on Truth Social, Trump demanded the immediate withdrawal of what he branded the EU’s “nasty” whiskey tariff. He accused the bloc of “hostile and abusive” behavior, asserting that it was “formed solely to exploit the United States.” The rhetoric underscores the deepening rift between the two economic powerhouses.
The European Commission, responding to the provocation, signaled a willingness to engage. A spokesperson revealed that “calls are being arranged” to address the dispute, confirming that Trade Commissioner Maroš Šefčovič has initiated contact with U.S. counterparts. While specifics remain undisclosed, the move suggests an effort to defuse tensions before they spiral further.
This latest exchange marks a significant escalation in a trade war that’s rattling global financial markets and raising alarms about its potential toll on economies worldwide. Analysts caution that the mounting tariffs could drive up costs for consumers and disrupt industries on both sides of the Atlantic, with ripple effects felt far beyond. As the standoff deepens, the prospect of a negotiated resolution hangs in the balance, overshadowed by Trump’s uncompromising posture and the EU’s measured but firm response.
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Europe sends more than €4.5bn ($4.89bn; £3.78bn) worth of wine each year to the US, which is its largest export market, according to the Comité Européen des Entreprises Vins, which represents the European wine industry.
Ignacio Sánchez Recarte, secretary-general of the group, said if Trump carried through on his threats, it would destroy the market, costing thousands of jobs.
“There is no alternative to sell all this wine,” he said, pleading with the two sides to “keep wine out of this fight”.
The trade war between the United States and its key allies flared up again this week after new U.S. tariffs on steel and aluminum took effect Wednesday. The measures impose a flat 25% duty on all imports of the metals, scrapping previous exemptions that had benefited shipments from nations like the European Union and Canada. The decision has reignited tensions with some of America’s largest trading partners, who swiftly condemned the move as baseless and vowed retaliation.
Both Canada and the EU wasted no time in responding. Labeling the tariffs unjustified, they unveiled their own countermeasures targeting a variety of U.S. goods. The EU’s package, set to kick in on April 1, includes a 50% tax on American whiskey—a clear signal of intent to hit back hard. The move echoes a familiar playbook from Trump’s first term, when his initial steel and aluminum tariffs in 2018 triggered a similar tit-for-tat with Europe.
That earlier clash left a mark. The EU’s 25% tariff on U.S. whiskey at the time took a toll, slashing American whiskey exports to the bloc by 20%. Data from the Distilled Spirits Council of the U.S. shows sales tumbling from $552 million in 2018 to $440 million by 2021—a steep drop that still stings for producers.
This latest round of tariffs threatens to deepen the economic fallout, reviving a battle that’s proven costly for businesses and consumers alike. With Canada and the EU digging in and the U.S. showing no signs of backing down, the stage is set for another bruising standoff that could ripple through global markets once more.
