US President Donald Trump has 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 aluminium tariffs by the US administration, was expected to take effect on April 1.
But Mr 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 US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES,” Mr Trump wrote.
“This will be great for the Wine and Champagne businesses in the US.”
The Republican president had signalled on Wednesday that he intended to take the action.
“Of course I will respond,” Mr Trump told reporters during an Oval Office exchange.
Mr Trump, in announcing the new steel and aluminium tariffs on Wednesday, openly challenged US 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 dollars.
These measures cover not just steel and aluminium products but also textiles, home appliances and agricultural goods.
