Trump threatens huge tariffs on EU spirits

Published March 14, 2025 Updated March 14, 2025 06:55am
WORKERS harvest Merlot grapes in Contessa Entellina, south west of Sicily in Italy. Wineries in Sicily are facing the double challenge of high temperatures and drought and threat by US President Donald Trump to impose 200 per cent tariffs on imports of European wine and other alcoholic products.—AFP
WORKERS harvest Merlot grapes in Contessa Entellina, south west of Sicily in Italy. Wineries in Sicily are facing the double challenge of high temperatures and drought and threat by US President Donald Trump to impose 200 per cent tariffs on imports of European wine and other alcoholic products.—AFP

WASHINGTON: US President Donald Trump on Thursday threatened to impose 200 per cent tariffs on wine, champagne and other alcoholic beverages from European Union countries, in retaliation against the bloc’s planned levies on US-produced whiskey.

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 a response to the European Union’s unveiling of tariffs on $28 billion in US goods, starting in stages from April.

The EU measures — including a sharp tariff hike on American whiskey — were in turn retaliation against Trump’s levies on steel and aluminum imports that took effect Wednesday.

“If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” Trump posted on his Truth Social platform.

Trump also renewed his harsh criticism of the bloc, singling out its 50pc 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 the union — which for decades has been at the heart of a US-led Western alliance — was formed to take advantage of the United States.

Trump later told reporters he would not bend on tariffs, be they on aluminum or steel or cars, even as European Commission head Ursula von der Leyen said the bloc is ready to negotiate over the escalating duties.

France pledged to fight back against any tariffs on wine and other alcoholic beverages.

“We will not give in to threats,” Foreign Trade Minister Laurent Saint-Martin said Thursday on X. He added France was “determined to retaliate.” US Commerce Secretary Howard Lutnick told Bloomberg Television Thursday that he had plans to speak with his European counterparts, without providing details.

An EU spokesperson told AFP its trade chief has reached out to Washington.

The EU earlier said it deeply regrets the US introduction of steel and aluminum tariffs, with spokesman Olof Gill adding that it would feel the same about any future measures while urging Wash­in­gton to revoke the duties.

Published in Dawn, March 14th, 2025

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Revised solar policy
Updated 15 Mar, 2025

Revised solar policy

Criticism policy revisions misplaced as these will increase payback periods for consumers with oversized solar systems.
Toxic prejudice
15 Mar, 2025

Toxic prejudice

WITH far-right movements on the march across the world, it is no surprise that anti-Muslim bias is witnessing high...
Children in jails
15 Mar, 2025

Children in jails

PAKISTAN’S children in prison have often been treated like adult criminals. The Sindh government’s programme to...
Cohesive response
Updated 14 Mar, 2025

Cohesive response

Solely militarised response has failed to deliver, counterterrorism efforts must be complemented by political outreach in Balochistan.
Agriculture tax
14 Mar, 2025

Agriculture tax

THE changes in the provincial agriculture income tax laws aimed at aligning their rates with the federal corporate...
Closing the gap
14 Mar, 2025

Closing the gap

PAKISTAN continues to struggle with gender inequality in its labour market. A new report by the ILO shows just how...