Trump threatens EU with tariffs yet again
US president Donald Trump has recommended a 50% tariff on imported goods from the European Union (EU) from 1 June.
He had originally introduced a 20% tariff on EU goods at the beginning of April, but these were paused and reduced to 10% a week later.
He is now threatening to hike the tariff up to 50%.
Posting on Truth Social, Trump said: “The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with.
“Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against Americans companies [sic], and more, have led to a trade deficit with the US of more than US$250,000,000 a year, a number which is totally unacceptable.
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!”
It is unclear how the EU will respond to the newly increased tariffs. It had previously chosen to exempt Bourbon and other American-made spirits and wines from its own 25% tariff on US goods.
Chris Swonger, president and CEO of Distilled Spirits Council (Discus), said: “We urge the US and EU to continue negotiations to get distilled spirits back to zero-zero tariffs, which will benefit the US hospitality sector and American distilleries.
“US distillers recently breathed a huge sigh of relief when the EU chose not to impose a 50% tariff on American whiskey in the steel and aluminium dispute. The EU’s action gave US distillers a glimmer of hope that the US and EU could find common ground and avoid any additional tariff escalation.
“The US-EU spirits sector was the model for fair and reciprocal trade, having zero-for-zero tariffs from 1997 up until the EU imposed a 25% retaliatory tariff on American whiskey in 2018.
“Over the past three years that the EU tariffs have been suspended, American whiskey exports to the EU have soared, supporting jobs at US distilleries as well as farms across the country. Distillers on both sides of the Atlantic want toasts not tariffs.”
We recently spoke to distillers across the US to find out how tariff uncertainty is affecting their businesses.
This week, global drinks firm Diageo revealed it expects US tariffs to hit its business by approximately US$150 million each year.
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