US President Donald Trump threatened to impose a massive 200 percent tariff on all alcohol imported to the United States from the EU Thursday, in response to the European Union’s announcement of a levy on US-produced whiskey on Wednesday.
The EU imposed the 50 percent levy after as part of its counter-tariffs in response to US tariffs on all steel and aluminum imports from the European Union.
In what is the last twist of a rapidly escalating trade war between the two allies, Trump in a Truth Social post, called for the immediate removal of the EU’s tariff on American whiskey, calling the EU “nasty,” “hostile and abusive,” and “formed for the sole purpose of taking advantage of the United States.”
“If this tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, AND ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES,” Trump said. “This will be great for the Wine and Champagne business in the U.S.”
The European Commission spokesperson said that “calls are being prepared” between the US and the EU to discuss the situation.
Trump foreshadowed the retaliation in an Oval Office meeting Wednesday. The president said he would respond to the EU’s retaliatory tariffs.
“Of course I will respond,” Trump said.
The European Union (EU) will impose counter-tariffs on 26 billion euros ($28 billion) worth of US goods from next month, the European Commission said on Wednesday, ramping up a global trade war in response to blanket US tariffs on steel and aluminium.
President Donald Trump’s increased tariffs of 25 percent on all steel and aluminium imports took effect on Wednesday as prior exemptions, duty-free quotas and product exclusions expired.
Trump hopes the tariffs will boost US steel and aluminium production but critics say it will raise prices for US consumers and dent economic growth.
The American Iron and Steel Institute (AISI), a group representing US steelmakers, welcomed the tariffs saying they will create jobs and boost domestic steel manufacturing.
The European Commission said it will end the current suspension of tariffs on US products on April 1 and will also put forward a new package of countermeasures on US goods by mid-April.
The suspended tariffs apply to products ranging from boats to bourbon to motorbikes, and the EU said it would now start a two-week consultation to pick other product categories.
The new measures will target around 18 billion euros in goods, with the overall objective to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs, the EU said.
