US President Donald Trump on Thursday threatened to impose a 200 per cent tariff on all wines, champagnes, and other alcoholic products from European Union (EU) countries if the bloc fails to remove its newly imposed tariff on whiskey.
“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 whisky,” Trump posted on Truth Social.
Trump warned that if the EU does not remove the whiskey tariff immediately, the US will respond with significant penalties. “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. This will be great for the wine and champagne businesses in the US.,” he added.
Global trade tensions escalate
Trump’s comments come amid escalating global trade tensions. Just hours after his administration’s 25% tariffs on steel and aluminium imports took effect, he issued a stern warning against retaliatory measures. The EU and Canada have already announced plans to impose counter-tariffs on American goods.
“Whatever they charge us, we’re charging them,” Trump said at the White House, signalling a tough stance on trade negotiations.
Impact and concerns
Trump’s aggressive approach has raised concerns among investors and businesses about potential economic repercussions, including fears of a global recession. Additionally, the strategy has strained relations with key allies, including Canada, complicating ongoing trade discussions.
(With agency inputs)