In a significant escalation of the ongoing trade war, President Trump announced on Thursday that he would impose a 200% tariff on all alcoholic beverages imported from the European Union if it does not remove its recently imposed 50% tariff on American whiskey. In a post on Truth Social, Trump labeled the EU as "one of the most hostile and abusive taxing and tariffing authorities in the World" and threatened that the U.S. will shortly place these hefty tariffs on all wines, champagnes, and alcoholic products coming out of France and other EU countries if the EU does not relent on its whiskey tariff. This statement was made in response to the EU's countermeasures that include tariffs on $28 billion worth of U.S. goods, including bourbon and various consumer products, set to take effect next month.

The EU tariffs were a direct reaction to Trump's 25% tariffs on steel and aluminum imports, which took effect earlier in the week and have raised concerns about the potential impact on global markets and consumer prices.

Trump expressed optimism that such tariffs would benefit the American wine and champagne industry. However, industry experts are expressing concerns that a tariff this high could backfire, hurting the interconnected network of distributors and retailers reliant on European wines, potentially decreasing sales for American wines as well.

As the trade tensions heighten, French government officials have condemned Trump’s rhetoric, stating they would not give in to threats. French Foreign Trade Minister Laurent Saint-Martin remarked, “We will not give in to threats and will always protect our industries,” emphasizing that France is determined to retaliate against Trump’s tariffs.

Beverage producers from both the U.S. and Europe are urging for a resolution, highlighting the damages such a tariff exchange would incur. The call for negotiations reflects a broader concern that continued tariff escalations could result in substantial increases in prices for consumers in both regions.