In a dramatic escalation of the trade dispute, US President Donald Trump announced on his social media platform, Truth Social, that the US will impose a 200% tariff on European wines, champagnes, and other alcoholic beverages if the European Union fails to revoke its planned 50% tariff on American whiskey imports, set to take effect on April 1.
Trump’s declaration is the latest salvo in a broader trade conflict that has seen tariffs slapped on various products by both the US and its trading partners, including retaliatory measures by the EU and Canada. Commission President Ursula von der Leyen responded by stating that the EU’s countermeasures will target US exports to the tune of €26bn, stressing that tariffs “bring nothing but lose-lose outcomes” and urging negotiations to resolve the issue.
The dispute is part of an aggressive trade policy under Trump’s administration, which has used heavy tariffs as leverage to address perceived global imbalances and pressure other countries into policy concessions. Critics warn that such extreme measures could disrupt supply chains, raise costs for consumers, and potentially push the US economy towards recession.
As global markets brace for the fallout from these escalating tariffs, both sides remain under pressure to negotiate and find a solution that avoids further economic damage.
