Trump Proposes 200% Tariff on EU Alcohol Products
“This will significantly benefit the wine and champagne industries in the U.S.,” President Trump states on Truth Social.
Former President Donald Trump has issued a warning of a potential 200 percent tariff on alcoholic beverages imported from France and other European Union nations.
If European authorities fail to revoke these counter-tariffs, the United States will respond by enforcing a 200 percent tax on wines, champagnes, and other alcoholic drinks coming from France and additional EU member countries.
“This will be great for the wine and champagne businesses in the U.S.,” Trump proclaimed.
On March 13, the European Commission revealed its plans to begin retaliatory actions due to the administration’s 25 percent tariffs on steel and aluminum imports. These measures include reversing previously suspended tariffs on American products and introducing new ones.
The EU tariffs are expected to impact approximately $28 billion worth of U.S. goods, including agriculture, apparel, appliances, and motorcycles.
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Despite these developments, the 27-member bloc “will always remain open to negotiations,” stated European Commission President Ursula von der Leyen. Trade Commissioner Maros Sefcovic is currently overseeing discussions with the United States.
“We deeply regret this action. Tariffs equate to taxes. They harm businesses and are even more detrimental to consumers.”
The EU’s counter-tariffs are scheduled to come into force on April 1.
Shares of Brown Forman, the parent company of Jack Daniels, rose by over 1 percent following this news, although the stock has decreased by over 6 percent throughout the year.
Trump, alongside Irish Prime Minister Micheal Martin, asserted that the United States will charge countries according to what they impose on the world’s largest economy.
“Nobody can argue with that,” he added, claiming that the EU was established “to take advantage of the United States.”
“When you make him unhappy, he reacts accordingly,” Lutnick stated.
“Their tariffs are significantly higher than ours. Let’s find a way to even it out.”
The administration has raised concerns over the inconsistencies between European and American tariff rates, describing them as unjust. For instance, the EU imposes a 10 percent tariff on American cars while the U.S. has a 2.5 percent tariff on European vehicles entering its market.
“Reciprocal tariffs should be the baseline, and European countries impose a 20 percent VAT,” he noted.
“Consider how many American cars are sold in Europe, Korea, or Japan. Good luck trying to purchase a Chevrolet in Germany.”
A VAT is a consumption-based tax levied on the value added at each production or distribution phase of goods and services. It ranges from 17 percent to 27 percent and is a significant revenue source for EU nations.
“There’s a reason Germany sells us eight times more cars than we sell to them, and it certainly isn’t due to American craftsmanship, quality, or anything else,” a White House official commented during a call with reporters last month.
