Topline
President Donald Trump said Thursday he would impose a 200% tariff on all wines, champagnes and alcohol products imported to the U.S. from European countries—specifically singling out wine from France—after the European Union on Tuesday announced new tariffs set to take effect in April in retaliation for Trump’s global metal tariffs that started Wednesday.
President Donald Trump meets with Ireland’s Prime Minister Michael Martin in the Oval Office at the … [+] White House on Wednesday, March 12, 2025 in Washington, DC. (Photo by Jabin Botsford/The Washington Post via Getty Images)
Key Facts
Trump said he would tax alcohol products from the EU unless it removes the 50% tax on imported American whiskey that’s part of the retaliatory tariffs set to take effect April 1.
Calling the European Union “one of the most hostile and abusive taxing and tariffing authorities in the world,” Trump said Thursday on Truth Social he would “shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” calling the whiskey tax “nasty” and predicting a tax on alcohol imports from the EU “will be great for the Wine and Champagne business in the U.S.”
The EU announced the tariffs in response to Trump’s 25% tax on steel and aluminum imports from U.S. trading partners that took effect Wednesday.
The EU’s tariffs are a reinstatement of taxes it charged on U.S. imports during Trump’s first term that target goods from Republican-held states, such as soybeans from House Speaker Mike Johnson’s Louisiana and beef and poultry from Kansas and Nebraska.
Crucial Quote
French foreign trade minister Laurent Saint-Martin accused Trump of “escalating the trade war he chose to unleash,” writing on X that France “remains determined to respond with the European Commission and our partners.”
Chief Critic
“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” Distilled Spirits Council President and CEO Chris Swonger said in a statement in response to the EU’s announcement to reimpose tariffs on American whiskey.
Tangent
Several provinces in Canada announced penalties on alcohol imports from the U.S. in response to Trump’s 25% tariffs on goods from Mexico and Canada that took effect earlier this month, though Trump backed off some of the tariffs and exempted goods covered under the U.S.-Canada-Mexico trade agreement until April 2. Alberta, Ontario, British Columbia and Manitoba are among those that pulled American alcohol products from their shelves.
Key Background
The European Union announced Tuesday it would slap tariffs some U.S. goods, including steel, aluminum, textiles and agricultural products largely sourced from red states. The tariffs are set to take effect in two waves, starting April 1, with another round of tariffs scheduled for April 13 on $19 billion in additional products yet to be identified, for a total of $28 billion. Trump has repeatedly walked back some of his tariffs threats, including a 50% tax on steel and aluminum imports from Canada in response to Ontario’s 25% levy on electricity. Ontario retracted the tax after Trump threatened to double the metals tariff.
What To Watch For
Reciprocal tariffs on all U.S. trading partners are set to take effect April 2, and Trump’s tariff exemption on goods covered under the U.S.-Canada-Mexico trade agreement is scheduled to expire.
Further Reading
Trump Tariff Backlash: Canada, EU Retaliate Over Steel And Aluminum Tariffs (Updates) (Forbes)
Trump’s Steel And Aluminum Tariffs Take Effect Today—Here’s How They Could Impact Prices (Forbes)
Trump Doubling Tariffs On Canadian Steel And Aluminum In Retaliation For Ontario Electricity Charges (Forbes)
