Laila Kirkpatrick, Staff Writer
President Trump has continued to escalate the trade war with Europe by threatening Europe with a 200% tariff on European alcohol. This comes as a response to the EU’s taxes and tariffs on U.S. steel and aluminum. This 25% tariff went into effect on Wednesday a move that the EU deemed unjustified and in response, the EU announced tariffs worth nearly $28 billion on U.S. goods including agricultural products and bourbon.
Trump took to his Truth Social account calling the EU “the most hostile and abusive taxing and tariffing authorities in the World.” He added that if the EU did not take back the 50% tariff on whisky then the U.S. would “place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.”
The global alcohol market has faced numerous issues over the past few years, however, the market was expecting a year of recovery before the tariffs. Now the market is uncertain about what issues will occur.
