Washington (AFP) – US President Donald Trump on Thursday threatened to impose 200 percent tariffs on wine, champagne and other alcoholic products from European Union countries, in retaliation against the bloc's planned levies on US-produced whiskey.
Issued on: 13/03/2025
US President Donald Trump and Irish Prime Minister Micheal Martin (back) arrive for a St. Patrick's Day Reception in the White House © Mandel NGAN / AFP
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.
His latest salvo was in response to Wednesday's unveiling by the European Union of tariffs on $28 billion in US goods in stages from April -- measures that in turn retaliated against Trump's earlier levies against steel and aluminum imports.
"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," Trump posted Thursday on his Truth Social platform.
Trump also renewed his harsh criticism of the bloc, singling out a 50 percent levy on US whiskey as "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."
France swiftly responded that it would fight back against any tariffs on wine and alcohol.
"We will not give in to threats," Foreign Trade Minister Laurent Saint-Martin said Thursday on X. He added that France was "determined to retaliate."
'Fed up'
French wine and spirit exporters, however, were angered at being put in Trump's line of fire, their federation said.
"We are fed up with being systematically sacrificed for issues unrelated to our own," Nicolas Ozanam, the director general of the federation, known by the acronym FEVS, said.
In comments made before Trump's Thursday threats, EU trade spokesman Olof Gill said the bloc was "prepared" for the situation.
"We are prepared for whatever might come and we have been preparing for over a year," he said. "I do want to emphasize... that we deeply regret the introduction of tariffs on steel and aluminum imports yesterday."
Uncertainty over Trump's trade plans and worries that they could trigger a recession have roiled financial markets. US stocks opened lower on Thursday, following the lead of Asian markets, although European markets rose.
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 to $699 million in 2024, 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 --- even if in the case of Canada the border sees negligible levels of smuggling.
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 agriculture 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."
© 2025 AFP
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.
His latest salvo was in response to Wednesday's unveiling by the European Union of tariffs on $28 billion in US goods in stages from April -- measures that in turn retaliated against Trump's earlier levies against steel and aluminum imports.
"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," Trump posted Thursday on his Truth Social platform.
Trump also renewed his harsh criticism of the bloc, singling out a 50 percent levy on US whiskey as "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."
France swiftly responded that it would fight back against any tariffs on wine and alcohol.
"We will not give in to threats," Foreign Trade Minister Laurent Saint-Martin said Thursday on X. He added that France was "determined to retaliate."
'Fed up'
French wine and spirit exporters, however, were angered at being put in Trump's line of fire, their federation said.
"We are fed up with being systematically sacrificed for issues unrelated to our own," Nicolas Ozanam, the director general of the federation, known by the acronym FEVS, said.
In comments made before Trump's Thursday threats, EU trade spokesman Olof Gill said the bloc was "prepared" for the situation.
"We are prepared for whatever might come and we have been preparing for over a year," he said. "I do want to emphasize... that we deeply regret the introduction of tariffs on steel and aluminum imports yesterday."
Uncertainty over Trump's trade plans and worries that they could trigger a recession have roiled financial markets. US stocks opened lower on Thursday, following the lead of Asian markets, although European markets rose.
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 to $699 million in 2024, 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 --- even if in the case of Canada the border sees negligible levels of smuggling.
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 agriculture 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."
© 2025 AFP
Stock markets find little cheer as Trump targets champagne
London (AFP) – Global stock markets mostly slid on Thursday as US President Donald Trump launched a new volley in his trade war and hopes for a quick Ukraine ceasefire faded.
Issued on: 13/03/2025 -
London (AFP) – Global stock markets mostly slid on Thursday as US President Donald Trump launched a new volley in his trade war and hopes for a quick Ukraine ceasefire faded.
Issued on: 13/03/2025 -
Investors were in no mood to celebrate after US President Donald Trump threatened another round of tariffs targeting wines an liquor from EU countries, including champagne © FRANCOIS NASCIMBENI / AFP/File
Worries about a potential US government shutdown at the weekend also weighed on sentiment.
Trump threatened Thursday 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, part of the EU's reprisals for US tariffs on steel and aluminium imports.
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.
Shares in luxury giant LVMH, which owns several champagne houses including Dom Perignon and Hennessy cognac, fell 1.4 percent in afternoon trading.
Shares in French drinks group Pernod Ricard, which owns two champagne houses and Jameson Irish Whiskey, tumbled 3.4 percent.
The Paris stock exchange was 0.4 percent lower in afternoon trading and Frankfurt shed 0.5 percent. London bucked the trend, edging less than a tenth of a percentage point higher.
Wall Street opened lower with the Dow giving up 0.3 percent.
The drop came despite data showing US producer inflation was flat in February, defying expectations of an uptick as Trump's tariff hikes targeting Chinese goods took effect.
David Morrison, senior market analyst at Trade Nation, said cool inflation data would normally spark a rally, but that investors remain wary.
"The problem is President Trump's tariff strategy, which appears indiscriminate, poorly targeted and inconsistent," he said.
"It's proving difficult to fathom the endgame. Is it about border control, making America great again, replacing income tax with levies on imports, all of the above, or none?"
Traders were meanwhile waiting on a decision from Russia on whether to mirror Ukraine's acceptance of a 30-day ceasefire as proposed by the United States.
"Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine," noted Russ Mould, investment director at AJ Bell.
Trump's special envoy Steve Witkoff, who arrived in Moscow, could possibly meet Russian leader Vladimir Putin, according to a Kremlin aide.
But comments by Russian officials ahead of Witkoff's arrival that a temporary truce with Ukraine was not in Moscow's interest dampened hopes for a quick breakthrough.
Gold, seen as a safe-haven investment, came close to reaching a new record high.
Trump's programme of tariffs and pledges to slash taxes, regulations and immigration has sparked market volatility and concerns that the measures could reignite inflation.
This in turn could force the Federal Reserve to hike interest rates again and cause a recession.
Analysts pointed out that the latest US inflation figures, while welcome, had to be taken in context.
National Australia Bank's Tapas Strickland said it was "worth noting the data was for February and thus largely pre-dates any potential tariff impacts".
Worries about a potential US government shutdown at the weekend also weighed on sentiment.
Trump threatened Thursday 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, part of the EU's reprisals for US tariffs on steel and aluminium imports.
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.
Shares in luxury giant LVMH, which owns several champagne houses including Dom Perignon and Hennessy cognac, fell 1.4 percent in afternoon trading.
Shares in French drinks group Pernod Ricard, which owns two champagne houses and Jameson Irish Whiskey, tumbled 3.4 percent.
The Paris stock exchange was 0.4 percent lower in afternoon trading and Frankfurt shed 0.5 percent. London bucked the trend, edging less than a tenth of a percentage point higher.
Wall Street opened lower with the Dow giving up 0.3 percent.
The drop came despite data showing US producer inflation was flat in February, defying expectations of an uptick as Trump's tariff hikes targeting Chinese goods took effect.
David Morrison, senior market analyst at Trade Nation, said cool inflation data would normally spark a rally, but that investors remain wary.
"The problem is President Trump's tariff strategy, which appears indiscriminate, poorly targeted and inconsistent," he said.
"It's proving difficult to fathom the endgame. Is it about border control, making America great again, replacing income tax with levies on imports, all of the above, or none?"
Traders were meanwhile waiting on a decision from Russia on whether to mirror Ukraine's acceptance of a 30-day ceasefire as proposed by the United States.
"Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine," noted Russ Mould, investment director at AJ Bell.
Trump's special envoy Steve Witkoff, who arrived in Moscow, could possibly meet Russian leader Vladimir Putin, according to a Kremlin aide.
But comments by Russian officials ahead of Witkoff's arrival that a temporary truce with Ukraine was not in Moscow's interest dampened hopes for a quick breakthrough.
Gold, seen as a safe-haven investment, came close to reaching a new record high.
Trump's programme of tariffs and pledges to slash taxes, regulations and immigration has sparked market volatility and concerns that the measures could reignite inflation.
This in turn could force the Federal Reserve to hike interest rates again and cause a recession.
Analysts pointed out that the latest US inflation figures, while welcome, had to be taken in context.
National Australia Bank's Tapas Strickland said it was "worth noting the data was for February and thus largely pre-dates any potential tariff impacts".
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