Trump threatens 200% tariff on European wine after EU proposes US whiskey tariff

US President Donald Trump has threatened a 200% tariff on European wine, champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.

The European tariff, which was unveiled in response to steel and aluminium tariffs by the US administration, was expected to take effect on April 1.

But Mr Trump, in a morning social media post, vowed a new escalation in his trade war if the EU pushes ahead with the planned 50% tariff on American whiskey.

“This will be great for the Wine and Champagne businesses in the US.”

The Republican president had signalled on Wednesday that he intended to take the action.

“Of course I will respond,” Mr Trump told reporters during an Oval Office exchange.

Mr Trump, in announcing the new steel and aluminium tariffs on Wednesday, openly challenged US allies and vowed to take back wealth “stolen” by other countries, and he drew quick retaliation.

He has separate tariffs on Canada, Mexico and China, with plans to also tax imports from the European Union, Brazil and South Korea by
charging “reciprocal” rates starting on April 2.

The EU announced its own countermeasures. European Commission President Ursula von der Leyen said that as the United States was “applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros”, or about 28 billion dollars.

These measures cover not just steel and aluminium products but also textiles, home appliances and agricultural goods.

European Commission spokesman Olof Gill said on Thursday, shortly before Mr Trump’s announcement, that the EU was “prepared for whatever might come, and we have been preparing for over a year”.

“We call on the US to immediately revoke the tariffs imposed yesterday, and we want to negotiate to avoid tariffs in the future,” Mr Gill added.

“They bring nothing but lose-lose outcomes and we want to focus on win-win outcomes.”