Trump threatens retaliatory 200% tariff on European wine after EU proposes American whiskey tariff

WASHINGTON (AP) — 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.

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.