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Trump threatens 200% tariff on EU spirits
President Donald Trump has retaliated to the European Union (EU)’s threat of a 50% tariff on American whiskey with a 200% tax on wine and spirits.
The EU announced this week that it was planning to move forward with its tariff on American whiskey from 1 April, and was considering targeting other US spirits such as gin.
The move was made in response to Trump’s decisions to bring back tariffs on steel and aluminium imports.
Posting on social media platform Truth Social, Trump said: “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 whiskey.
“If this tariff is not removed immediately, the US will shortly place a 200% tariff on all wines, Champagnes and alcoholic products coming out of France and other EU represented countries. This will be great for the wine and Champagne businesses in the US.”
The trade dispute between the EU and the US has been ongoing since 2018, during Trump’s first term as president.
In June 2021, the hike was set to double to 50%, before it was suspended until 1 December 2021. In January 2022, then US president Joe Biden placed a two-year suspension on the tariffs, which was further extended in December 2023 until 31 March 2025.
Pauline Bastidon of SpiritsEurope commented: “This cycle of tit-for-tat retaliation must end now. We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us.
“The EU and US must de-escalate this dispute now and ensure spirits are never again caught in the crossfire.
“We are each other’s top markets – interwoven by investment, tradition, and shared success, so keep spirits out.”
EU brandy and Cognac is also suffering from China’s anti-dumping investigation, which has been extended until 5 April. The tensions caused the value of French spirits exports to fall by 6.5% last year.
The US is now also involved in a dispute with Canada and Mexico. Trump’s proposed 25% tariffs on its neighbours is currently postponed until 2 April.
Chris Swonger, president of the Distilled Spirits Council of the US (Discus), added: “The US-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997. The US spirits sector supports more than US$200 billion in economic activity, 1.7 million jobs across production, distribution, hospitality and retail, and the purchase of 2.8 billion pounds of grains from American farmers.
“We urge president Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create US jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs.”
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