Trump proposes 200% tariff on EU alcohol imports in trade escalation

US President Donald Trump has threatened to impose a 200% tariff on wine, champagne, and other alcoholic drinks imported from the EU.

Trump noted that the threat would remain until the EU removed a duty on US-made whiskey.

“If this tariff is not removed immediately, the US will shortly place a 200% tariff on all wines, champagnes and alcoholic products coming out of France and other EU represented countries," the US president wrote on his Truth Social platform on Thursday.

"This will be great for the wine and champagne businesses in the US,” he added.

European alcohol firms saw their shares plummet in response to Trump's threat.

Pernod Ricard stock was down 3.2%, Rémy Cointreau shares fell 3.8%, while LVMH — which owns Moët & Chandon and Veuve Clicquot — saw its share price fall 1.9%.

Thursday's development follows a long-awaited response from Brussels just a day earlier, reacting to Trump's 25% tariffs on steel and aluminium imports.

European Commission President Ursula von der Leyen said that the bloc would impose countermeasures on up to €26 billion worth of US goods.

“We deeply regret this measure,” von der Leyen said in a statement.

“Tariffs are taxes, they are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy,” she added.