The EU-U.S. trade war has gone up a notch, as President Donald Trump hit back at the EU’s 50% counter-tariffs against American whiskey, threatening to place a 200% tariff on wine and other alcoholic products from the European Union market.
The American president issued the threat in a post on his TruthSocial platform, stating that he would impose higher import tariffs if the European Union did not revoke the tax on American whiskey. The measure was introduced as retaliation for Trump’s steel and aluminum tariffs, which went into effect yesterday, according to Bloomberg.
“If this tariff is not immediately revoked, the U.S. will soon impose a 200% tariff on all wines, champagnes, and alcoholic beverages from France and other EU-represented countries,” Trump declared regarding the whiskey tax. “This will be great for wine and champagne businesses in the U.S.”
In his post, he referred to the EU as “one of the most hostile and abusive tax and tariff authorities in the world, created solely to exploit the United States.” He also called the retaliatory tariff on American bourbon “ugly,” according to Reuters.
In response, the European Commission announced on Wednesday that it will impose counter-tariffs on American products worth €26 billion ($28 billion) starting next month. This move escalates the global trade war in response to the U.S. tariffs on steel and aluminum.
Apart from the EU-U.S. trade war, President Trump has also opened up an economic “front” against Canada. On Wednesday, the U.S. neighbor to the north, announced new retaliatory trade duties on some $21 billion worth of U.S. goods, responding to Trump implementing universal steel and aluminum tariffs.
