US president Donald Trump has threatened to introduce tariffs of 200% on alcoholic drinks from the EU in the latest escalation of his trade war with the bloc.
The levies would be imposed on European-made wines, spirits, beers and liqueurs unless the EU removed its 50% tariff on US whiskey announced earlier this week, Trump said.
Writing on his Truth Social social platform, Trump said: “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.
“If this tariff is not removed immediately, the US will shortly place a 200% 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 added.
The EU introduced its counter tariffs on Wednesday (12 March) after the US placed blanket tariffs of 25% on all steel and aluminium imports.
Trade group SpiritsEurope said in a statement yesterday it was “extremely concerned” by the mounting trade war and possible implications for spirits suppliers on both sides of the Atlantic.
It urged the EU and US to “keep spirits out of unrelated disputes”.
Tariffs of such magnitude would likely cast serious doubt on the ability of European alcohol producers to continue to profitably export to the US.
More than 26.9 million bottles of champagne were shipped to the US in 2023, down 20% on 2022. The market remains the largest export market for champagne globally, however.
The US is also the largest export market by volume for cognac, meaning suppliers such as Moët Hennessy, Pernod Ricard, Campari and Rémy Cointreau would be heavily exposed should the 200% tariffs materialise.
Shares in Pernod Ricard and Campari fell by more than 4% in early afternoon trading on Thursday. Remy Cointreau, meanwhile was down by 3.3%.
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