JAKARTA – Former U.S. President Donald Trump has reignited trade tensions with the European Union by threatening to impose a hefty 200% tariff on imported European alcoholic beverages, including champagne, wine, and spirits. His latest statement, made via Truth Social on Thursday (March 13), was a direct response to the EU’s decision to implement new tariffs on American goods, including whiskey, as a countermeasure against Trump’s previous trade policies targeting European steel and aluminum.
Trump did not mince words in his criticism of the European Union, labeling it an unfair and exploitative trade partner that has long taken advantage of the United States. His rhetoric echoed the nationalist economic policies he championed during his presidency, emphasizing the need to protect American businesses from what he perceives as hostile foreign trade practices. “The European Union has imposed unjust tariffs on American products, particularly whiskey. If they do not reverse this decision immediately, the United States will respond with a 200% tariff on all wine, champagne, and alcoholic beverages from France and other EU nations,” Trump declared, as reported by the Daily Mail on Friday (March 13, 2025).
The trade dispute has significant implications for both American and European industries, particularly in the alcoholic beverage sector. The EU’s newly implemented tariffs, set to take effect on April 1, will hit American whiskey exports the hardest, affecting distillers in Kentucky, Florida, and Texas—states with deep economic and political ties to Trump’s support base. Analysts warn that the additional financial burden could destabilize whiskey exports to Europe, which were valued at around $699 million in 2024. In contrast, European alcohol exports to the U.S. during the same period reached approximately €2.9 billion, underscoring the imbalance in trade flow and the potential damage to European producers should Trump follow through on his threats.
Chris Swonger, CEO of the Distilled Spirits Council, voiced concern over the EU’s tariff decision, calling it a setback for American distillers who have spent years rebuilding their export market in Europe. Swonger warned that heightened trade barriers would only serve to stifle business growth, disrupt supply chains, and ultimately harm consumers who could face rising prices and limited product availability.
Trump’s retaliation strategy places champagne at the center of the dispute, directly targeting one of France’s most iconic and prestigious industries. Under strict French regulations, champagne can only be produced in the Champagne region, making it a luxury commodity with significant economic and cultural value. European wine and spirit manufacturers are now bracing for the impact of potential tariffs, fearing a sharp decline in exports that could cripple their businesses and force them to seek alternative markets.
European Commission President Ursula von der Leyen responded swiftly, warning of the broader economic consequences that such tariffs could trigger. She emphasized that protectionist policies of this scale rarely benefit any party involved, as they increase costs for businesses and consumers alike. Von der Leyen also highlighted the risk of price surges on both sides of the Atlantic, cautioning that a prolonged trade war could strain diplomatic relations and slow economic recovery efforts.
Beyond the escalating U.S.-EU trade conflict, Trump’s aggressive tariff stance has also put Washington at odds with Canada. The Canadian government has already announced its own retaliatory tariffs worth $21 billion, targeting American imports such as computers and sports equipment. This ongoing pattern of escalating trade disputes reflects a broader struggle for economic dominance, with key U.S. trading partners pushing back against policies they perceive as unfair and damaging to global commerce.
The coming weeks will be critical in determining whether Trump’s threats materialize into actual policy or whether negotiations can de-escalate the situation. As industries on both sides prepare for potential disruptions, the world watches closely, aware that the repercussions of a trade war extend far beyond the alcohol industry, shaping the future of transatlantic trade relations for years to come.
