Trump threatens a 200% EU alcohol tariff

US President Donald Trump threatened a 200% tariff for any alcohol coming to the United States from the European Union (EU) in the latest turnover of an escalating trade war.

The threat is an answer to EU plans for a 50% tax on the import of US whiskey as part of his revenge on Trump Tariffs for the entire import of steel and aluminum to the United States.

The US President called for the immediate removal of the “nasty” tariff of the EU on US whiskey, calling the block “hostile and violent” and “formed for the sole purpose of taking advantage of the United States.”

A spokesman for the European Commission said “calls” between the US and the EU are being prepared to discuss the situation.

He confirmed that his Commissioner for Commerce, Maros Chief, “contacted his American counterparts” after Trump’s last threat.

Standing marks another escalation of a trade war that has shook financial markets And it has caused concerns about the impact on economies and consumers in many countries around the world, including the United States.

Europe sends more than 4.5 billion euros ($ 4.89 billion; $ 3.78 billion) to wine every year in the United States, which is its largest export market, according to Comité Europeen des Enterpises Vins, which is the European wine industry.

Ignacio Sáncez Recarte, secretary general of the group, said that if Trump continues from his threats, it would destroy the market worth thousands of jobs.

“There is no alternative to selling all this wine,” he said, begging with both sides to “keep the wine outside this match.”

The last clash came after new US rates for steel and aluminum came on Wednesday, hitting the imports of 25% metal imports and terminating the release from the obligations that the United States had previously provided for supplies from some countries, including the EU and Canada.

Canada and Europe – which are among the largest trading partners in America – called the new taxes unjustified and have affected their own rates for a number of US products. EU measures must come into force on April 1.

Ther Clash represses a battle that is played during Trump’s first term when he first announced tariffs for steel and aluminum.

The EU responded with its own rates, including a 25% tax on US whiskey.

As a result, whiskey sales dropped by 20%, falling from approximately $ 552 million in 2018 to $ 440 million in 2021, according to the US Distilled Spirit. Trump in turn

The tariffs were canceled after Trump left his post after the two countries reached an agreement that released a certain amount of European metals from obligations.

But Trump has pointed out a little appetite for deals so far, at least when it comes to steel and aluminum.

“If this tariff is not removed immediately, the US will soon set a 200% tariff for all wines, champagne and alcohol products coming out of France and other EU countries,” he wrote in social media, using all capital letters for some of the message.

Wine and whiskey targeting is symbolic – there are few consumer goods more emblematic than French burgundy or Tennessee whiskey. In terms of value, the drink trade costs less than some of the other subjects facing tariffs.

But Mary Taylor, based in the US importer of European wines, said the measures would be catastrophic for her business and industry, with an impact that would break down at restaurants, bars and distributors in the United States.

“It just looks like a big, giant threat to our livelihood,” she said.

D -Ja Taylor, who carries 2 million bottles a year, lasts a 25% tariff that Trump put on certain bottles in the EU during his first term, expanding his distribution in Europe, but she said: “200% is a completely different ball game.”

Shares in the United States again fell on Thursday.

The S&P 500 dropped nearly 1.4%, reducing it approximately 10% of its latest peak – a cornerstone known as a correction. Dow dropped by 1.3%, while Nasdaq dropped almost 2%.

In Europe, the London FTSE 100 was equal, while Germany DAX ended with about 0.5% lower.

In Paris, the CAC 40 fell by 0.6%as the shares of the main spirit manufacturers were affected, with the Pernod Ricard dropping 4%and the Hennessy LVMH cognac manufacturer fell 1.1%.

In interviews with American business media on Thursday, White House employees have accused the EU of escalating the dispute.

“Why are Europeans embark on motorcycles in Kentucky Bourbon or Harley-Davidson? It’s disrespectful,” commerce secretary Hoard Luni told Bloomberg television, describing the reverse as “outside the subject”.

Finance Minister Scott Beshent has warned that the trade war is likely to inflict more EU economic pain than in the United States, rejecting fears that the collision may stop.

“One or two items, with one trade block – I’m not sure why it’s a big deal for the markets,” he said.

In an interview with Hardtalk of BBC, European Central Bank President Christine Lagarde said the EU had no “choice” except to take revenge.

“At the moment everyone is positioning,” she said, adding that she expects both sides to sit down and negotiate.

“Everyone will suffer,” if the dispute becomes a complete outbreak of trade war, she warned.

So far, Trump has shown a little tolerance to revenge on the parties in terms of the tariffs he has introduced.

Earlier this week, he blew up Canada with a threat of 50% tariff on his steel and aluminum after the Canadian province of Ontario responded to new tariffs with an extra charge for electricity exports to the United States.

He canceled that the threat after Ontario agreed to stop the allegations.

Former Trump Advisor Stephen Moore, now an economist from the Inheritance Foundation, said he believes the EU would have to concession to defuse the situation, noting that Trump was constantly concerned about the rules of agricultural products.

“Absolutely that will end a deal,” he said. “This is only a question whether he finds himself in a deal for one day, week, month or six months, but in the end there will be a negotiation agreement.”

The full HardTalk will be available from March 14 on BBC News Channel, IPlayer, world service and as a podcast.