WASHINGTON — President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.


What You Need To Know

  • The European Commission is calling on President Donald Trump to revoke tariffs now that he's threatened a 200% tariff on European wine, Champagne and spirits if Europe goes forward with a planned tariff on American whiskey

  • The European tariff is expected to go into effect April 1

  • Trump in a social media posting Thursday called the EU "one of the most hostile and abusive taxing and tariffing authorities." 

  • European Commission spokesman Olof Gill says Europe wants to "negotiate to avoid tariffs." Gill says tariffs bring lose-lose outcomes and Europe wants to focus on "win-win outcomes."

The European tariff, which was unveiled in response to steel and aluminum tariffs by the U.S. administration, was expected to go into effect on April 1.

But 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.

"If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES," Trump wrote. "This will be great for the Wine and Champagne businesses in the U.S."

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

"Of course I will respond," Trump told reporters during an Oval Office exchange with reporters.

Trump, in announcing the new steel and aluminum tariffs on Wednesday, openly challenged U.S. 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.

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

European Commission spokesman Olof Gill said Thursday shortly before 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 U.S. to immediately revoke the tariffs imposed yesterday, and we want to negotiate to avoid tariffs in the future," Gill added. "They bring nothing but lose-lose outcomes, and we want to focus on win-win outcomes."

U.S. bourbon makers, meanwhile, urged Trump to back off his trade war.

"The US-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997," Chris Swonger, president and CEO of the Distilled Spirits Council, said in a statement. "We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs."