Trump Threatens 200 Percent Tariff on EU Alcohol in Trade Spat

President Donald Trump has warned of a 200 percent tariff on European alcohol in retaliation for EU duties on U.S. whiskey. This escalation follows the EU’s 25 percent levy on American spirits like bourbon amid ongoing trade friction. Trump’s threat aims to protect U.S. distillers and pressure Europe into dropping its tariffs fast.

The EU imposed its tariffs in 2018 after Trump hit European steel and aluminum with duties first. American whiskey exports worth 700 million dollars annually took a hit from the retaliation. Trump now ups the ante claiming the EU has exploited U.S. markets for too long.

European alcohol imports like French wine and Scotch whisky flood the U.S. at over 10 billion dollars yearly. A 200 percent tariff would triple their cost potentially slashing demand and jobs across the Atlantic. Trump calls it fair play to level a trade field he sees as tilted against America.

U.S. distillers in states like Kentucky cheer the move saying EU tariffs gutted their growth for years. They argue Europe’s subsidies and barriers justify a hard response to save American jobs. Critics warn it could spark a broader trade war hurting consumers with pricier drinks.

The EU vows to hit back if Trump follows through with firms like Diageo and Pernod Ricard in the crosshairs. Past trade spats saw Europe target U.S. goods from Harley bikes to peanut butter. This time leaders like Poland’s Tusk urge talks to avoid a spiral of tit-for-tat levies.

Trump’s base loves the tough stance seeing it as proof he puts America first in global dealings. His team claims tariff threats forced concessions from China and Canada already. Detractors say it risks alienating allies and jacking up costs for U.S. bars and buyers.

The alcohol tariff threat ties into Trump’s wider push to rework trade pacts favoring U.S. makers. He frames the EU as a bad actor formed to fleece American workers since day one. Whether it’s bluster or policy hinges on EU moves in the coming weeks.

Markets brace for volatility as stocks in European liquor giants dip on the news. U.S. whiskey makers hope for relief while importers dread a price shock. This high-stakes showdown tests Trump’s tariff gambit as both sides dig in for a bruising fight.