US President Donald Trump has issued a warning that his administration may impose a 200% tariff on wine, champagne, and other alcoholic beverages imported from the European Union (EU) if the bloc does not remove its 50% duty on US-made 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,” Trump stated on his Truth Social platform on Thursday.
“This will be great for the wine and champagne businesses in the US,” he added.
European Alcohol Stocks Drop
Trump’s tariff threat caused a decline in European alcohol stocks, with shares of Pernod Ricard falling 3.2%, Rémy Cointreau dropping 3.8%, and LVMH, the owner of Moët & Chandon and Veuve Clicquot, seeing a 1.9% decline.
This announcement came just a day after the EU reacted to Trump’s 25% tariffs on steel and aluminum imports.
EU’s Response
European Commission President Ursula von der Leyen responded, stating that the EU would introduce countermeasures on up to €26 billion worth of US goods.
“We deeply regret this measure,” von der Leyen said.
“Tariffs are taxes, they are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy,” she added.
US Distillers Express Disappointment
The Distilled Spirits Council of the United States also weighed in on the dispute, with its CEO Chris Swonger expressing concerns over the impact on American whiskey exports.
“The EU’s announcement to reimpose these tariffs on American whiskey at 50% on 1 April is deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,” Swonger said in a statement on Wednesday.
Trade Dispute Timeline
The trade dispute between the US and the EU over spirits dates back to 2018, when the US imposed a 25% tariff on EU-made alcohol. This move was part of a larger trade conflict involving Airbus, as the World Trade Organization (WTO) ruled that EU subsidies to the aircraft manufacturer were illegal.
In retaliation, Brussels imposed its own 25% tariffs on American products, including orange juice, peanut butter, and bourbon.
A truce was reached in 2021, when both sides agreed to suspend tariffs related to the Airbus dispute for five years. Following this, US whiskey exports to the EU recovered by nearly 60% from 2021 to 2024, reaching $699 million (€644 million).
Other Markets Impacted
Beyond the EU, US alcohol exports face further challenges.
Just last week, Canadian provinces began pulling US-made beer, spirits, and wine off shelves in retaliation for Trump’s 25% levies on Canadian goods.
As trade tensions escalate, the fate of US-EU whiskey and wine exports remains uncertain.
