President Donald Trump is threatening a massive 200 percent tariff on champagne and wine from Europe in the latest escalation of a bitter trade war.
The president lashed out at the ‘nasty’ European Union after it announced tariff hikes on American imports in retaliation for Trump’s increases on steel and aluminum.
The tit-for-tat measures have raised the stakes in Trump’s ongoing trade war, sparking fears of a recession in the United States and a shock to the global economy.
In his latest salvo Trump threatened ‘a 200% Tariff on all wines, champagnes, & alcoholic products’ after the EU raised tariffs on American goods including whiskey. Many Republican states in the U.S. produce whiskey.
Writing on Truth Social, Trump said: ‘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.’
Trump’s move would drastically raise the prices of European wine for Americans.
The president himself does not drink alcohol.
President Donald Trump is threatening a 200% retaliatory tariff on champagne and wine out of Europe as trade war increases
On Wednesday, the EU had slapped new tariffs on American goods in response to Trump’s decision to implement a 25 percent increase on incoming steel and aluminum.
‘Of course I’m going to respond,’ Trump threatened after the EU announcement.
Kentucky, Florida and Texas – all states that voted for Trump – are the ones who will be hurt the most by the EU’s attack on whiskey.
But Trump, in return, is now hitting Europe where it will hurt.
European spirits exports to the U.S. stood at 2.9 billion euros in 2024. By comparison, American whiskey exports to Europe stood at $699 million in 2024, according to the Distilled Spirits Council.
Europe is a growing and significant customer for American whiskey.
The EU’s decision to spike tariffs on American whiskey is “deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,” Chris Swonger, CEO of the Distilled Spirits Council, said.
Trump is also targeting one of France’s signature products.
Champagne refers to a specific area in France which produces the bubbly wine.
The name ‘champagne’ is legally protected by an 1891 treaty called the Madrid System and declares only sparkling wine produced in Champagne region of France can be called ‘champagne’.
However, the U.S. was not bound by the Madrid System and its wine makers also produced ‘champagne.’
But, in 2005, the U.S. entered into an agreement with the European Union that said California Champagne would no longer be used on domestic wine labels.
However, the agreement carved out an exception: if a U.S. winemaker was using the word ‘champagne’ before 2006, they could continue to use it.
Winemaker Nicolas Brassou harvests grapes in the South of France
The EU is targeting U.S. industrial and farm products from Republican-led states in its counter tariffs, focusing on American meat, bourbon, motorcycles, bourbon, peanut butter and jeans.
The move will cost American companies billions and escalate the trade war between the U.S. and its partner across the pond. The new tariffs go into place April 1.
Prices will go up, in Europe and the United States, and jobs are at stake, warned European Commission President Ursula von der Leyen.
‘We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers,’ Von der Leyen said.
Trump’s steel and aluminum tariffs will likely increase the cost of producing goods from home appliances to automobiles and cans used for drinks.
The president, in a long tirade in the Oval Office on Wednesday, slammed the EU, repeating his claim it was formed to hurt the American economy.
‘The E.U. was set up in order to take advantage of the United States,’ Trump said.
He said previous presidents had ‘lost big segments’ of the U.S. economy, adding that the ‘European Union treats us very badly’.
‘We’ve been abused for a long time and we will be abused no longer,’ he said, adding that the United States would ‘win that financial battle’ with the EU.
‘Financially we will be stronger than ever before. I think the markets are going to soar when they see what’s happening,’ he said.
Grape vineyards in Burgundy, France
Trump is also warring with Canada on tariffs, having increased taxes on their steel and aluminum too.
Canada, in response, announced $21 billion in new tariffs targeting imports of U.S. computers and sports gear.
Commerce Secretary Howard Lutnick is scheduled to meet today with Ontario Premier Doug Ford about the tariff issue.
Ford had implemented a tariff on Canadian electricity going to the United States.
Trump responded by threatening to increase the tariffs on steel and aluminum to 50 percent.
When Ford rescinded his electricity tariff, Trump backed down, leaving the tariff at its 25 percent increase.
