Washington (AFP) – US President Donald Trump on Thursday threatened to impose 200-percent tariffs on wine, champagne, and other alcoholic products from France and other European Union countries in retaliation against the bloc’s planned levies on US-produced whiskey.
“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,” he posted on his Truth Social platform. Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.
On Wednesday, the European Union unveiled tariffs countering US moves on steel and aluminum, hitting some $28 billion of US goods in stages from April. Trump on Thursday renewed his criticism of the bloc, singling out a 50-percent levy on US whiskey as being “nasty.” He termed the EU “one of the most hostile and abusive taxing and tariffing authorities in the World” and said it “was formed for the sole purpose of taking advantage of the United States.”
Uncertainty over Trump’s trade plans and worries that they could trigger a recession have roiled financial markets. But US stocks regained some ground Wednesday even as some Asian markets retreated. US distillers have called the EU’s levy on American whiskey “deeply disappointing.” “Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” said Distilled Spirits Council head Chris Swonger in a statement on Wednesday.
A 2018 imposition of similar tariffs led to a 20-percent drop in American whiskey exports to the European Union. The lifting of that measure in 2021 saw US whiskey exports surge by nearly 60 percent, industry data showed. It was not immediately clear what legal justification Trump would rely on to hike tariffs on European alcohol. Trump’s tariff wars have taken aim at Canada, Mexico, and China over allegations they are not doing enough to curtail fentanyl smuggling or illegal immigration into the United States.
He has also taken aim at specific commodities, including steel, aluminum, and copper. Some countries, much like the EU, have imposed retaliatory tariffs on the United States in response to Trump’s moves to address what he terms unfair trade imbalances. China has vowed “all necessary measures” in response to US measures and has already imposed duties of 10-percent and 15-percent targeting US agricultural products ranging from soybeans to chicken.
European Commission chief Ursula von der Leyen on Wednesday maintained that the EU’s retaliation, affecting products ranging from bourbon to motorbikes, was “strong but proportionate.”
© 2024 AFP
