Another day, another tariff-based headline…
President Trump threatened to enact a 200% tariff on European wine, champagne and other alcoholic beverages, the latest escalation in a brewing trade war between the US and the EU.
The president in a social media post on Thursday said that he would move forward with the import duties if the EU doesn’t repeal a tax on US whiskey, a measure put in place to retaliate against Trump’s steel and aluminum tariffs that went into effect on Wednesday.
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.
If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.
This will be great for the Wine and Champagne businesses in the U.S.
France – the biggest exporter of alcohols to the US – immediately responded after the country’s Trade Minister Laurent Saint-Martin said France won’t give in Trump’s tariff threats and will “always protect” its industries. Trump is “escalating the trade war he chose to unleash,” Saint-Martin said, adding that France is “determined to retaliate with the European Commission and our partners.”
D. Trump lance la surenchère dans la guerre commerciale qu’il a choisi de déclencher.
La France reste déterminée à riposter avec la Commission européenne et nos partenaires.
Nous ne céderons pas aux menaces et protègerons toujours nos filières.
— Laurent Saint-Martin (@LaurentSMartin) March 13, 2025
Trump’s jab came a day after E.U. leaders announced that they would respond to the United States imposing 25% tariffs on up to €26 billion ($28.3 billion) worth of steel, aluminum and related products. The EU will also immediately begin consultations with member states, with the aim of adopting the additional lists of agricultural and industrial goods subject to tariffs as high as 25% by mid-April. As reported last night, the 27-nation bloc plans to react to the US in two waves:
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First, with tariffs as high as 50 percent on U.S. products including Harley-Davidson motorcycles and Kentucky bourbon, which will take effect on April 1;
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and second, a series of measures in mid-April that would target farm products and industrial goods that are important to Republican districts.
“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown” will “further curtail growth and negatively impact distillers and farmers in states across the country,” Chris Swonger, the chief executive of the Washington-based Distilled Spirits Council, said in a statement on Wednesday.
The euro sold off against the dollar…
And US futures are fading…
European spirits and drinks makers dropped on the news: LVMH, which has wines and spirits divisions, falls 2%; spirits maker Pernod Ricard -3%, cognac producer Remy Cointreau -3.4%, Davide Campari -2.8%, Diageo -0.3%
Cue the re-retaliatory threats from Brussels… and around and around we go.
Tyler Durden
Thu, 03/13/2025 – 09:25
