In response to the European Union’s counter tariffs against those imposed by US President Donald Trump, Washington has threatened new taxes on European alcohol.
If Brussels does not reverse its €26 billion-worth of charges on goods including US bourbon, Trump said he would “quickly implement 200 per cent tariffs on all wines, champagnes and spirits imported from France and other EU countries”.
On March 13, the President posted on his Truth Social network platform: “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50 per cent tariff on Whisky.”
“If this tariff is not removed immediately, the US will shortly place a 200 per cent tariff on all wines, champagnes and alcoholic products coming out of France and other EU represented countries.
“This will be great for the wine and champagne businesses in the US,” he said.
Ignacio Sánchez Recarte, secretary general of the Comité Européen des Entreprises Vins (CEEV), the association representing European wine companies, said in a reaction to Brussels Signal on March 13: “If the proposed 200 per cent tariffs on EU wines are implemented, it would effectively shut down the US market for EU wines — a devastating hit for our industry.”
“The US accounts for 27 per cent of our total exports, and there is no alternative market that could compensate for such a loss. In value €4.5 billion!”
“We urgently call on both the European Commission and US governments to find a resolution on the steel and aluminium dispute and put an end to the threat of these tariffs once and for all…. and until then, leave wine out of unrelated disputes and any retaliatory list of products!,” Recarte concluded.
Olof Gill, commission spokesperson for trade, told Brussels Signal “We have no new comment on the latest statement by President Trump, but we can confirm that Commissioner Šefčovič reached out to his American counterparts immediately after the announcements yesterday, and calls are being prepared.”
French foreign trade Minister Laurent Saint-Martin reacted on X on March 13, saying: “Donald Trump is escalating the trade war he chose to unleash. France remains determined to retaliate with the European Commission and our partners. We will not give in to threats and will always protect our sectors.”
D. Trump lance la surenchère dans la guerre commerciale qu’il a choisi de déclencher.
La France reste déterminée à riposter avec la Commission européenne et nos partenaires.
Nous ne céderons pas aux menaces et protègerons toujours nos filières.
— Laurent Saint-Martin (@LaurentSMartin) March 13, 2025
Trump’s threats also sent shockwaves to the stock market as major French alcohol companies went into the red minutes after he made his post.
Of the EU exports to the US, France made up almost half and Italy almost 40 per cent last year.
On the shares market, Moet Hennessy Louis Vuitton lost nearly 2 per cent, Pernod Ricard took a hit of minus 3.21 per cent and Rémy Cointreau dropped by 5.8 per cent, while Campari fell 4.21 per cent.
The €4.5 billion in exports to the US is part of the €13.06 billion total for alcoholic beverages and spirits the EU exports.
On March 12, SpiritsEUROPE, the representative body for the European spirits industry, said it was “extremely concerned” by retaliatory tariffs against the US, noting: “Yet again, spirit drinks have become collateral damage in an unrelated trade dispute.”
The organisation warned that the tariffs would severely impact EU companies producing US spirits, US firms with major investments in Europe and the entire value chain — threatening countless jobs, including those in rural areas.
Since 1997, there has been a reciprocal “zero-for-zero” agreement between the EU and the US that eliminated tariffs on spirits.
According to the spirits representative body, that led to a growth of 450 per cent in transatlantic trade until 2018 – before retaliatory tariffs were first introduced.
Spirits have already faced setbacks in 2024, with exports to the China/Hong Kong/Singapore region plunging 25 per cent due to Beijing’s anti-dumping investigation into EU-produced wine brandies, including cognac and Armagnac, triggered by a broader tariff war on electric vehicles.
Since his return to power in January 2025, Trump has announced the implementation of several tariffs, ranging from 10 per cent to 25 per cent, against Canada, Mexico, China, Japan, Australia and the EU.
Increased tariffs of 25 per cent on all steel and aluminium imports took effect on March 12 as prior exemptions, duty-free quotas and product exclusions expired.
SpiritsEUROPE, the representative body for the European spirits’ industry, has said it was “extremely concerned” by retaliatory tariffs against the US. https://t.co/nwVthg3wsA
— Brussels Signal (@brusselssignal) March 13, 2025
