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Trump threatens 200% tariff on European alcohol in response to EU whiskey tax

After facing backlash from Europe, President Trump threatens hefty tariffs on wines, champagnes, and other alcoholic beverages from EU nations
Bottle of Moët & Chandon Champagne served in a bucket
Posted 12:57 PM, Mar 13, 2025
and last updated 3:08 PM, Mar 13, 2025

After President Donald Trump implemented broad tariffs on steel and aluminum imports on Wednesday, he is apparently now eyeing major tariffs on alcohol.

In a post on Truth Social on Thursday, President Trump said he would enact a 200% tariff on all alcoholic products coming from the European Union, claiming the tariffs would be "great for the wine and champagne business in the U.S."

After the U.S. imposed a tariff on global aluminum and steel imports, the European Union retaliated by enacting a 50% tariff on whiskey from the U.S. The tariff is set to take effect on March 31.

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President Trump said if Europe does not lift its tariff on whiskey, he would impose the 200% tariff on all "wines, champagnes, and alcoholic products coming out of France and other E.U.-represented countries."

"The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% tariff on whiskey," he said.

The National Association of American Wineries, the National Restaurant Association, the National Retail Federation and the American Beverage Licensees have all previously said they oppose all alcohol tariffs.

"WineAmerica has long opposed tariffs, regardless of the Administration in power, because they ultimately hurt everyone from grape growers to wineries and consumers in a variety of ways. We are part of a coalition called 'Toasts not Tariffs,' which will continue to monitor the situation," the National Association of American Wineries said in a statement.

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The Observatory of Economic Complexity estimates that the U.S. imports $6.84 billion a year in wine while exporting just $1.54 billion. The U.S. imports about $2.53 billion in wine from France and $2.16 billion in wine from Italy each year.

The U.S. also imports about $10.8 billion in hard liquor a year while exporting a mere $2.33 billion. Nearly half of the United States' hard liquor imports come from Mexico, but France also makes up a significant portion as the U.S. brings in over $2 billion a year from there.

Tariffs are an import tax charged to companies when products are crossing international borders. Economists believe companies will tend to pass the cost of tariffs on consumers.