President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.
The European import tax, which was unveiled in response to steel and aluminum tariffs by the U.S. administration, is expected to go into effect on April 1, just ahead of separate reciprocal tariffs that Trump plans to place on the EU.
But Trump, in a morning social media post, vowed a new escalation in his trade war if the EU goes forward with the planned 50% tax on American whiskey.
“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,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”
European Commission President Ursula von der Leyen said Thursday that the EU trade commissioner would be having a phone call Friday with his U.S. counterpart.
“We don’t like tariffs because we think tariffs are taxes and they are bad for business and they are bad for consumers," she said. "We have always said at the same time that we will defend our interests. We’ve said it, and we’ve shown it, but at the same time I also want to emphasize that we are open for negotiations.”
The U.S. president has defined his opening weeks in the White House with near daily drama regarding tariffs, saying that taxing imports might cause some economic pain but would eventually lead to more domestic manufacturing and greater respect for America.
But with the EU and Trump now tussling over alcohol tariffs, the impact of a trade war could surface for consumers. It's unclear how the import taxes would be absorbed among vintners, distillers, brewers, distributors, retailers and consumers.
Because of Trump's threat, a previously untariffed $15 bottle of Italian Prosecco could possibly increase in price to $45. Similarly, Europe's response to Trump's steel and aluminum tariffs means that the cost of a 30-euro bottle of bourbon in Paris could increase to 45 euros.
Holly Seidewand, owner of First Fill Spirits, a shop in Saratoga Springs, New York, said before Trump threatened the tariffs on European alcohol, the spirits industry was already reeling from layoff announcements in the Kentucky Bourbon sector and the tariffs planned by the EU on American spirits.
“This ongoing tariff war doesn’t just harm importers — it weakens domestic brands, disrupts distributors, and squeezes retailers who rely on global selections,” she said. “In the end, consumers will bear the brunt of it all."
Gabriel Picard, who heads the French Federation of Exporters of Wines and Spirits, said 200% tariffs would be “a hammer blow” for the sector. He said the U.S. market is worth 4 billion euros ($4.3 billion) annually for French exporters of wines and spirits.
“Not a single bottle will continue to be expedited if 200% tariffs are applied to our products. All exports to the United States will come to a total, total, halt,” Picard said in an interview with The Associated Press. “With 200% duties, there is no more market.”
As of now, Europe seems unwilling to back down.
“Trump is escalating the trade war he has chosen,” Laurent Saint-Martin, the French delegate minister for foreign trade, said on X. “France, together with the European Commission and our partners, is determined to fight back. We will not give in to threats and will always protect our industries.”
Trump's latest tariff threats suggested that even companies that have publicly stood by him could be collateral damage, raising questions about whether the wider business community would be willing to openly challenge a series of trade wars that have hurt the stock market and scared consumers who worry about inflation worsening.
Bernard Arnault, the CEO of French luxury goods company LVMH, attended Trump's inauguration in January. His company's wine and spirits brands, which include Moët & Chandon, Krug, Veuve Clicquot and Hennessy, could be subject to the retaliatory tariffs the U.S. president is seeking. The Italian company Campari could also be hurt, after the White House highlighted it at Tuesday's press briefing for possibly opening a U.S. factory.
The Republican president on Wednesday had signaled that he intended to take the tariffs action.
“Of course I will respond,” Trump told reporters during an Oval Office exchange with reporters.
Trump, in announcing the new steel and aluminum tariffs on Wednesday, openly challenged U.S. allies and vowed to take back wealth “stolen” by other countries, and he drew quick retaliation.
He has separate tariffs on Canada, Mexico and China, with plans to also tax imports from the European Union, Brazil and South Korea by charging “reciprocal” rates starting on April 2.
The EU announced its own countermeasures. European Commission President Ursula von der Leyen said that as the United States was “applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” or about $28 billion.
Those measures cover not just steel and aluminum products but also textiles, home appliances and agricultural goods.
European Commission spokesman Olof Gill said Thursday shortly before Trump's announcement that the EU was "prepared for whatever might come, and we have been preparing for over a year.”
“We call on the U.S. to immediately revoke the tariffs imposed yesterday, and we want to negotiate to avoid tariffs in the future,” Gill added. "They bring nothing but lose-lose outcomes, and we want to focus on win-win outcomes.”
U.S. whiskey makers, meanwhile, encouraged Trump to broker a deal.
“We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector," Chris Swonger, president and CEO of the Distilled Spirits Council, said in a statement.
When Europe responded to Trump's 2018 tariffs with a 25% tax on U.S. whiskey, exports to the EU fell by 20% through 2021, according to the Distilled Spirits Council. Trump's separate 25% tariffs on Canada and Mexico could put 31,000 jobs at risk in the sector.
AP writers Lorne Cook in Brussels, Samuel Petrequin and John Leicester in Paris, Mae Anderson, Dee-Ann Durbin and Mike Warren contributed reporting.
© Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
46 Comments
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Asiaman7
Trump continues to wreak havoc on the U.S. economy and the hard-earned savings of so many hardworking Americans, while using his position of power for his own personal benefit.
The conservative-leaning Wall Street Journal exclusively broke news today that Trump is “pursuing a business deal involving a [foreign] felon seeking a pardon from his administration.” The article stressed this deal with Changpeng Zhao would be “an unprecedented overlap of [Trump’s] business and the government” and “would also be a striking expansion of the family’s cryptocurrency endeavors as Trump signs a series of executive orders that benefit the industry.”
—
https://www.wsj.com/finance/currencies/trump-family-has-held-deal-talks-with-binance-following-crypto-exchanges-guilty-plea-05b029fa?
Peter Neil
There will come a great reckoning.
Bobby Franks
It appears Trump is devaluing the dollar to push investors toward his family’s cryptocurrency endeavors.
What a shyster!
GBR48
It's not just export reductions. Trump and Musk are generating boycotts abroad too. US soft power is history.
There is no such thing as US champagne or prosecco. Only sparkling wine produced in the relevant regions can be so termed. But what's in a name? The US produces vast amounts of sparkling white that can fill the gap.
In general this won't make too much difference as both the US and EU produce all types of booze. Wine and spirit buffs may be distraught though. And producers will have to globalise their sales a bit more.
I'm just glad this is the US and booze, not India and tea. My current tea stash should last about a year. Perhaps it is time to double it, just to be on the safe side.
KnightsOfCydonia
How goes the cult of personality?
diobrando
Just do it, soon you will step back like car taxes. In all the cases, you will dig even more your own grave and tour country within. Boycott of US Brands is effective in all over the world.
Wasabi
trump is destroying his country little by little but MAGA does not want to understand. They are as guilty as felon 47 and they feel great now....
ok1517
Donald doing his utmost to destroy old alliances, dumping fuel in the fire, all to satisfy his personal revenge desires!!
Paul Novax
California wine is outstanding anyway.
I'veSeenFootage
Maybe someone should tell this ignorant buffoon that there is no "champagne business" in the US.
Chico3
I'm glad that Trump is serving the American people (not). These "Tariffs" will only damage people in the end. It's nothing but pure inflated ego on his part. Nothing else. Glad that most Americans don't go for his ego. This is obviously a huge mistake that should be in the Business 101 textbooks on how NOT to succeed in business.
Tokyo Guy
Maybe someone should tell this ignorant buffoon that there is no "champagne business" in the US.
I wouldn't recommend that. He'll decide to invade France so he can claim usage of the name "Champagne".
HopeSpringsEternal
Countries of EU have a choice, lower tariff and non-tariff barrier to 'match' US rates and help your consumers with lower prices and choice, $Pay US 'Reciprocal' Tariffs starting 2 April or move production to US to avoid Reciprocal Tariffs
grund
So the US can impose tariffs but when others do the same in retaliation it is suddenly not OK? The US is becoming really diffficult to like these days. Not even China or Russia behaves like this.
wallace
More Trump chaos.
u_s__reamer
Judging from his mad-hatter shenanigans since he slunk back behind the fig-leaf of the resolute desk, there's no chance the felonious grifter will last 4 years. Europeans should turn their backs on the orange bully who thinks he can run the country (and the world) like Tony Soprano.
Paul Novax
These tariffs will severely damage the EUs wine and spirits industry. It's a wake up call for the EU.
nickybutt
All Europeans should boycott all American products. Then Trump fails. I have boycotted all American products since the start of March and will continue for at least the next four years. If enough people do the same the Amercian economy will tank.
EvilBuddha
India is reducing tariffs on whisky from 150 percent to 100 percent in order to placate Trump.
India is the largest whisky market in the world and it consumes more than half of the world’s whisky supply. India consumes more whisky than US, France and Japan combined.
So if the EU wants to keep on rubbing Trump off the wrong way, it's most welcome. India will step in and replace it's substantial consumption of Pernord Ricard's Royal Stag and Imperial Blue brands with Jack Daniels and Jim Beam.
EvilBuddha
All Europeans should boycott all American products. Then Trump fails. I have boycotted all American products since the start of March and will continue for at least the next four years. If enough people do the same the Amercian economy will tank.
Yes because the US can not survive with Europe. Or is it the other way round?
OKuniyoshi
Here we go, again. The rest of World should just forget about trump and America. The rest of us should just get along with ourselves/trade/exchange/etc. Advice for America, just impose 1000% tariffs on the rest of the world, we can all go to sleep, including America, we can stop wasting time.
KnightsOfCydonia
So currently they aren't drinking Jack Daniels and Jim Beam?
But they will now switch from European brands to US brands?
Why?
EvilBuddha
So currently they aren't drinking Jack Daniels and Jim Beam?
3 out of the top 10 whisky brands in India are from Pernord Ricard stable.
https://www.forbesindia.com/article/explainers/top-10-whisky-brands-india/94217/1
Jack Daniels has a very small market share in India because the British spoiled the taste of Indians by introducing them to Scotch whisky. India is now reducing tariffs on Bourbon to please Trump.
https://hospitality.economictimes.indiatimes.com/amp/news/speaking-heads/will-the-cut-in-bourbon-tariffs-increase-its-popularity/118571857
Though I do admit I have a soft corner for Blenders Pride because of some fond memories since my college friends all were whisky drinkers.
Paul Novax
What internet browser did you use to post here?
BB
I'll do my part to buy up some of that French and Italian wine. Take one for the team.
Amber
Paul NovaxToday 02:54 pm JST
What internet browser did you use to post here?
VIVALDI - Made in Sweden - works great.
Nibek32
Trump has the same bargaining skills as a 3 year old.
itsonlyrocknroll
Donald Trump wants permanent lasting radical change quickly.
Economic, militarily, every sector....
President Trump will secure such change, however with chaos.
Listen please.....
Trump vows response to the EU's retaliatory tariffs: 'Of course I'm going to respond'
https://www.youtube.com/watch?v=T1hSh_-EGCM
2nd April I understand reciprocal "tariff" will introduce, force change .
To understand why i suggest EU member states could well have to sooner or later comply
EU regulatory framework protects the "producer/lobbyist" not the consumer.
All right here
EUR-Lex
Access to European Union law
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM:regulation
Common agricultural policy
https://agriculture.ec.europa.eu/common-agricultural-policy_en
These laws, regulations inflexibility have, and will continue to be EU “Achilles' heel” .... Add in the gross ring fenced single currency.
Paul Novax
Oh yeah--close, but you got it wrong.
See, VIVALDI is headquartered in NORWAY.
https://vivaldi.com/company/#locations
Its founder is Icelandic-Norwegian.
What you meant to say is you use MULLVAD, which is based in SWEDEN.
Enjoy your MacBook Air.
Jimizo
Have you read half of the books ever written on PCs?
itsonlyrocknroll
I spent my secondment opportunities in Lyon, short time Paris.
A wonderful time, the people, french cuisine.
Economically, taxation, the cost of living, all enshrined in the principle of subsidiarity.
Article 5(3) of the Treaty on European Union, dictates that the EU should only act when it's more effective than Member States acting alone at national, regional, or local levels, except in areas of exclusive EU competence.
Federalization on a scale, that would be unthinkable to the US developed mixed economy, purchasing power parity.
DeeZee
I find it hilarious that people are calling for boycotts of U.S goods and services now. These same people were fine a year ago when the U.S was selling bombs to Israel to butcher children in Gaza yet all a sudden the U.S turns on them through imposing tariffs and they get so angry. Just goes to show you people don't care about lives but as soon as their economic interests are targeted then they start changing their political tune.
itsonlyrocknroll
There does not have to be a "Trade War".
Negotiate a constructive agreed trading system through compromise.
All parities.
Nibek32
American quality of life going down the drain. In all honesty, Americans deserve the suffering coming their way.
I say that as an American…expat.
ThePunisher
Forcing Americans to drink Californian wine and vile US "Whiskey" because that are tarriffed out of the real stuff is cruel punishment.
The junk is often watered down with sweet cola for good reason - to try and make it drinkable.
itsonlyrocknroll
There is some reasonable Californian Wines
Want to Understand California Wine? These 11 Bottles Will Teach You Everything
https://www.foodandwine.com/california-wine-essential-bottles-8713823
I will pass on the "Whiskey" and the fast food.
BBQ is outstanding
Deo Gratias
Despite the media drum-beat about how the tariffs are going to cause major damage to the US economy:
More Trump Success: Core Consumer Prices Dip To Lowest Level In Almost 4 Years As Inflation Eases
In another sign of the success of the Trump administration, the inflation rate for February came in lower than economists had predicted, with core consumer prices dropping to their lowest level in nearly four years.
“The annual core consumer price inflation rate in the United States, which excludes items such as food and energy, eased to 3.1% in February 2025, from 3.3% in the prior month and below market expectations of 3.2%. It is the lowest figure since April 2021,” Trading Economics reported.
"This inflation report, much like last week’s jobs report, is far better than the media predicted and the so-called ‘experts’ expected,” White House Press Secretary Karoline Leavitt celebrated on Wednesday morning.
https://www.dailywire.com/news/trump-success-consumer-prices-lowest-level-in-almost-4-years-inflation?fbclid=IwZXh0bgNhZW0CMTAAAR3pJSqoq8qTlQde_Mpy1E0waZeMvsXE-0f8WNttGVBeN3aFVlwW3hnMLDs_aem_m2LXBNDMIDxMd1gMoxHU8g
1glenn
Other than his self-promotion scams, is there even a single Trump-run business that did not go bankrupt, or require a bailout by Russian-guaranteed loans from Deutsche Bank? Even his "Art of the Deal" is a total scam.
quercetum
It’s the French who won’t allow anyone else to call it champagne and so it’s sparkling wine. A violet by any other name is still a violet.
If only sandwiches from Sandwich could be called a sandwich, that doesn’t mean the world has no sandwiches.
HopeSpringsEternal
DJT knows a great way to LOWER global inflation is to LOWER tariffs and non-tariff barriers
Reciprocal tariffs designed to get countries and their companies to either lower their tariffs, or produce in US, either of which will result in greater supply side market access, pricing competition and economic growth.
Countries and companies electing to do 'nothing' will simply have to $Pay for US market access equal to what US companies pay to access their domestic markets.
HopeSpringsEternal
DLT by threatening massive 200% tariffs, trying to overwhelm EU, as they can't win a trade war with US as they have approx. 350 $Billion annual trade surplus, WHY?
EU political officials are upset because they're losing control over the narrative described above, the ability to $benefit from their protected companies' windfall profits due to the tariffs they implemented.
EU companies will either be forced to move production to the US (many are) or become uncompetitive within the US market due to reciprocal tariffs.
Politicians and bureaucrats thus in a quandary, lower their tariffs and lose their leverage over domestic producers, see domestic producers move abroad, again losing leverage, or finally see domestic producers become uncompetitive within US and thus less profitable and again lose leverage with these same companies.
Any real surprise DJT's so HATED by nearly entire political class outside the US that trades with the US?
Any real surprise DJT's tariff polices so POPULAR with most US workers and most US companies?
HopeSpringsEternal
Finally, all of above's widely understood and hardly controversial. High tariffs damage economic growth and only benefit a very few due to artificial manipulation of markets, while hurting everyone else with higher prices.
Not surprisingly it's the political elite, both elected and unelected that benefit along with select companies provided domestic market barriers that allow such companies (or farmers) to raise their prices higher than possible within a normal market equally open to all.
DJT's seeks to lower global inflation and promote economic activity by forcing trading partners to lower their tariffs, produce in US, or via reciprocal tariffs effectively lose export access to US markets.
kurisupisu
Maybe scotch whisky will get a reprieve in the US – that seems likely to me
funkymofo
Exactly, and tariffs are the first and last resort for trump. That’s all he knows. A baby waving around an AK-47. Stop pretending he knows what he’s doing.
HopeSpringsEternal
DJT knows what he's doing, tariffs tensions will peak soon, you can be sure MANY more countries will announce in the coming weeks their decision to lower tariff and non-tariff barriers to achieve US reciprocity.
Above will be a process that plays out for months and eventually there will be lower prices and more choice for consumers in MOST countries that trade with the US.
Above will put downward pressure on inflation while spurring economic growth across the world and if peace is achieved in Ukraine, further downward pressure on especially commodity prices and thus lower inflation.
DLT = $Golden Economic Touch, big reason he's #47
funkymofo
It’s a lovely fantasy, but the multiple Nobel winning economists, the trade war, the $5 trillion knocked off the stock market and the rapid descent into recession tell a vastly different story.