I may have to go out and stock up on Scotch and Irish Whiskey before this goes into effect:
Trump threatens 200% tariff on E.U. wine and liquor, says world is 'ripping us off'
President Donald Trump threatened Thursday to impose 200% tariffs on alcohol from the European Union in response to the region's retaliatory 50% tariff on U.S. whiskey, further escalating tensions between two longtime trading partners.
Trump also sharpened his rhetoric toward the E.U., which has for decades been one of the closest U.S. allies.
"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% Tariff on Whisky," Trump wrote on Truth Social. "If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S."
A spokesperson for the European Commission said that the region's trade minister has already contacted his U.S. counterparts and that “calls are being prepared.”
Later Thursday morning, Trump posted: "The U.S. doesn’t have Free Trade. We have 'Stupid Trade.' The Entire World is RIPPING US OFF!!!"
After some early gyrations Thursday morning, the major U.S. stock indexes settled firmly in the red, with the S&P 500 approaching correction territory, almost 10% down from its all-time high in February. The tech-focused Nasdaq index was down 1.4% and is now down more than 14% from is February high.
The United States remains the world's largest importer of both wine and Champagne and sparkling wine, with the former comprising $4.9 billion in annual sales and the latter more than $1.7 billion. Meanwhile, U.S. exports of wine rank fifth among all nations at about $1 billion, while its exports of sparkling wine total just $67 million, 12th in the world.
The impact of the tit-for-tat tariffs could weigh more heavily on U.S. consumers, who depend on imports of the goods, than manufacturers of them.
In a statement, the Distilled Spirits Council of the United States, which represents alcohol makers here, called on Trump to come to an agreement with the E.U. over the impasse, noting that neither region's liquors have been subjected to tariffs for multiple decades.
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