In a move that heightens the prospect of another trade war across the Atlantic, Donald Trump has vowed to impose a 200 per cent tariff on wine, champagne and other alcoholic products from the European Union unless the bloc immediately lifts its planned surcharge on American whiskey.
The European Commission announced that it intends to apply a 50 per cent levy on US whiskey exports in retaliation for the United States’ recent tariffs on steel and aluminium. However, the former president responded on Truth Social, branding the EU tariff as “nasty” and threatening to raise the stakes by quadrupling costs for European drinks brands in the American market. “This will be great for the Wine and Champagne businesses in the US,” he claimed.
The Trump family is not without its own stake in the drinks industry. Eric Trump, Donald Trump’s son, serves as president of Trump Winery in Charlottesville, Virginia. The 1,300-acre estate offers wine-tasting services, operates a hotel in the foothills of the Blue Ridge Mountains, and sells an array of premium wines, including a “Presidential Reserve: Inaugural Edition” sparkling wine priced at nearly $250.
The EU’s counter-tariffs on American whiskey, which it first introduced in 2018 during Trump’s presidency, are set to return on 1 April. The Distilled Spirits Council of the United States noted that when similar measures were enforced between 2018 and 2021, American whiskey exports to the EU declined by 20 per cent, slipping from $552 million to $440 million. Following their removal under President Biden in 2021, exports climbed by nearly 60 per cent to reach $699 million last year.
Chris Swonger, president and chief executive of the Distilled Spirits Council, urged Mr Trump to pursue a “zero-for-zero” tariff deal with the EU to bolster exports and protect jobs in America’s hospitality sector, adding: “We want toasts, not tariffs.”
Laurent Saint-Martin, France’s trade minister, criticised the renewed threat of a hike in duty as an unwelcome provocation. “France remains determined to respond with the European Commission and our partners. We will not give in to threats and will always protect our sectors,” he said.
European drinks companies felt the immediate impact on stock markets, with shares in Moët champagne owner LVMH declining by €8.90, or 1.47 per cent, to €603.10, while French distiller Rémy Cointreau slid by €1.70, or 3.6 per cent, to €45.38. Campari Group dropped by €0.24, or 4 per cent, to €5.79, and Pernod Ricard fell by €3.46, or 3.5 per cent, to €96.74.
