President Trump is firing back at the European Union with a bold tariff threat that could drastically change your wine choices. The brewing trade war threatens to triple the price of your favorite European wines and spirits amid escalating tensions over steel and aluminum tariffs. But if an economic war with Europe means America gets richer, then it’s hard to see this as a problem.
At a glance:
- Trump threatens 200% tariff on European wines and spirits if EU proceeds with 50% tariff on whisky
- The conflict stems from U.S. 25% tariffs on aluminum and steel that the EU deemed “unjustified”
- EU has announced retaliatory tariffs on $28 billion worth of U.S. goods including agricultural products and bourbon
- Trump called the EU “hostile and abusive” regarding taxes and tariffs in a Truth Social post
- Industry leaders warn these tariffs could devastate the spirits sector which has enjoyed zero-for-zero tariffs since 1997
Trump’s Bold Response to EU “Abuse”
President Trump escalated the developing trade dispute with the European Union by threatening massive 200% tariffs on European alcohol imports. The President made his intentions clear in a strongly worded Truth Social post, where he characterized the EU as “the most hostile and abusive taxing and tariffing authorities in the World.”
The conflict ignited after the U.S. imposed a 25% tariff on aluminum and steel imports, which the European Union declared “unjustified” and responded with planned tariffs on $28 billion worth of American goods. These retaliatory measures specifically target American bourbon whiskey and various agricultural products that could hurt U.S. producers.
A European tariff on American whiskey, which was announced in response to Trump's steel and aluminum tariffs, is set to go into effect on April 1. https://t.co/m0bO2q7tHn
— WFMY News 2 (@WFMY) March 13, 2025
Industry Leaders Express Concern
The spiraling trade tensions threaten decades of cooperative trade relations in the spirits industry that has benefited both American and European producers. Chris Swonger, CEO of the Distilled Spirits Council of the United States, highlighted the importance of maintaining stable trade relations, stating, “The U.S.-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997.”
Not any more.
Swonger urged President Trump to negotiate with European leaders to prevent further escalation that could damage American businesses. He emphasized that returning to zero-for-zero tariffs would benefit the hospitality industry and U.S. craft distillers who export their products to European markets.
The global alcohol market had been anticipating a moderate recovery by 2025 after several challenging years due to the pandemic. Industry analysts now warn that these proposed tariffs could severely impact market growth predictions and cause significant disruption throughout the supply chain.
🚨🇺🇸🇪🇺 BREAKING: Trump threatens to slap a 200% tariff on all EU wines and champagne unless the EU removes its tariffs on American whiskey.
The ultimatum escalates US-EU trade tensions, with bourbon and Tennessee whiskey caught in the crossfire. Will Brussels bend—or brace for… pic.twitter.com/aawxyRPRzk
— Live Updates (@LiveupdatesUS) March 13, 2025
Strategic Differences in Response
Countries are responding differently to Trump’s aggressive trade stance, with some seeking negotiation rather than retaliation. The United Kingdom and Australia have criticized the broader tariff policy but are reportedly seeking exemptions through diplomatic channels rather than imposing counter-tariffs.
Trump has dismissed criticisms of his tariff strategy from economists and media outlets, suggesting their perspectives are influenced by “Globalist” and “European Union” thinking. His approach represents a significant departure from traditional free trade policies, instead focusing on bilateral negotiations that he believes better protect American interests.
