US President Donald Trump has issued a stern warning that his administration will impose a 200% tariff on European alcoholic beverages if the European Union does not lift the 50% tariff it recently imposed on US spirits. This marks an escalation in global trade tensions following the EU’s reinstatement of import taxes on American whiskey, in retaliation for the US tariffs on steel and aluminum.
Trump’s threat follows the European Commission’s announcement to lift the suspension on previous levies on US goods, including whiskey, starting in April. Ursula von der Leyen, President of the European Commission, defended the EU’s actions, stating, “The countermeasures we take today are strong but proportionate.”
Commerce Secretary Howard Lutnick expressed frustration over the EU’s high tariffs, emphasizing the imbalance between the tariffs imposed by the two parties. He also revealed plans for a new round of reciprocal tariffs that could target European nations.
The announcement triggered a decline in European liquor stocks, with LVMH Moet Hennessy Louis Vuitton suffering a drop of 14% since February. Other liquor brands like Remy Cointreau and Pernod Ricard also saw declines, while US alcohol stocks, including Brown Forman, also faced losses.