United States President Donald Trump further escalated global trade tensions with his plans to put a 200% tariff on alcohol from France and other European nations.
This comes after the European Union moved to impose a 50% import tax on American 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,” he posted to Truth Social.
The whiskey tariffs were spurred on by Trump’s recently implemented tariffs on steel and aluminium.
The current tariff battle mirrors the battle that played out during Trump’s first term where the EU implemented a 25% whiskey tariff on the U.S. This caused whiskey sales to drop by 20% from around US$552 million in 2018 to $440 million in 2021.
A European spokesperson said that “calls are being prepared” between the U.S. and Europe to discuss the situation.
According to European wine industry representatives, Comité Européen des Entreprises Vins, Europe sends more than US$2.89 billion worth of wine to the U.S. annually. This makes it one of its largest export markets. According to the secretary general of the group, Ignacio Sánchez Recarte if Trump’s threats are carried through it would destroy the market and cost thousands of jobs.
According to CNBC, the trade war has pressured already struggling European liquor stocks. They have also impacted U.S. alcohol stocks, with shares of Jack Daniels' parent company Brown Forman dipping 5.9%, despite a rise on Thursday.
