Trade tensions between the United States and the European Union have escalated sharply this week, as the U.S. threatens to impose a massive 200% tariff on European wines and spirits.
The conflict began when the Trump administration announced a 25% tariff on imports of steel, aluminum, and related products from the EU. In a swift response, the EU declared a 50% tariff on American whiskey, striking at one of the U.S.’s key export industries.
On Thursday, U.S. President Donald Trump warned that unless the EU lifts its whiskey tariff immediately, the U.S. would retaliate with a 200% tariff on all wines, champagnes, and other alcoholic beverages from France and other EU member states.
France, as one of the world’s largest exporters of wine and spirits, was quick to respond. The sector is the country’s third-largest revenue generator, and the threat has raised serious concerns among producers and government officials.
French Minister Delegate for Foreign Trade Laurent Saint-Martin vowed retaliation if Washington follows through. “France remains determined to respond with the European Commission and our partners,” he stated on his X account, emphasizing that neither France nor the EU would succumb to pressure.
Echoing this stance, French Foreign Ministry spokesman Christophe Lemoine promised an “immediate, firm, and appropriate” response should the new tariffs be enforced.
European Commission President Ursula von der Leyen, during a visit to South Africa, indicated that while the EU is open to negotiations, it will firmly defend its interests. “We are ready to discuss, but we will not hesitate to protect our industry,” she asserted.
Experts warn that the escalating tariff war could harm both economies. Luka Brkic, a professor at Croatia’s Libertas International University, cautioned, “Tariffs do no good to anyone, least of all to the country that imposes them.”
Industry groups across Europe have expressed alarm. The Federation of French Wine and Spirits Exporters (FEVS) highlighted the sector’s vulnerability amid economic and geopolitical pressures. SpiritsEUROPE, representing European spirits producers, urged both sides to exclude alcoholic beverages from unrelated trade disputes.
The Irish Whiskey Association echoed these concerns, warning that tariffs could severely impact businesses and consumers alike.
As tensions mount, stakeholders on both sides of the Atlantic are anxiously watching for developments, hoping for a resolution that avoids further economic fallout.
