US President Donald Trump has threatened to impose a 200% tariff on alcohol imports from the European Union, escalating tensions in an ongoing trade dispute. The move comes in response to the EU’s plans to impose tariffs on American whiskey, a retaliatory measure following Trump’s decision to place duties on steel and aluminium imports.
Trump, writing on Truth Social, called for the immediate removal of EU tariffs on US whiskey, labeling the bloc as “nasty,” “hostile and abusive,” and accusing it of being “formed for the sole purpose of taking advantage of the United States.” He argued that his proposed tariff would be “great for the Wine and Champagne businesses in the US.”
The European Commission confirmed that talks are being arranged between EU and US officials in an attempt to resolve the issue. A spokesperson stated that Trade Commissioner Maroš Šefčovič had reached out to his American counterparts following Trump’s remarks.
This latest development is part of a wider trade war that has sent shockwaves through global markets. Earlier this month, Trump imposed 25% tariffs on certain imports from Mexico and Canada—some of which were later suspended—and raised levies on Chinese goods to at least 20%. His blanket 25% duty on steel and aluminium imports, which took effect on Wednesday, ended previous exemptions granted to shipments from the EU and Canada.
Trump has also hinted at further tariffs, vowing to announce “reciprocal” country-specific duties next month and floating the idea of new taxes on products such as copper, lumber, and automobiles.
The EU and Canada—two of the US’s largest trading partners—have condemned the measures as unjustified and responded with tariffs of their own on a variety of American products. The EU previously targeted US whiskey with a 25% duty in retaliation for Trump’s metal tariffs during his first term. That move led to a 20% drop in US whiskey exports to the EU, falling from $552 million in 2018 to $440 million in 2021, according to the Distilled Spirits Council of the US.
While the two sides eventually struck a deal that lifted the tariffs and allowed a limited amount of European metals to enter the US without duties, Trump ended that exemption this week, signaling little interest in further negotiations.
US officials have blamed the EU for exacerbating tensions. Commerce Secretary Howard Lutnick criticized European leaders for singling out American products like Kentucky bourbon and Harley-Davidson motorcycles, calling it “disrespectful.” Treasury Secretary Scott Bessent downplayed concerns that the trade war could spiral out of control, arguing that any economic impact would be felt more severely in Europe than in the US.
With tensions rising and new tariffs looming, the latest trade battle between the US and EU could have significant consequences for businesses and consumers on both sides of the Atlantic.
