(Image Credit: IMAGN) The surgeon general warns that drinking alcohol is linked to higher cancer rates. The warning has stirred debate about whether insurers should be allowed to charge higher rates for people who consume alcohol.
Washington D.C. – In an intensification of the ongoing trade war between the United States and the European Union (EU), President Donald Trump has threatened to impose a 200% tariff on European wines, champagnes, and other alcoholic products. This threat comes after the EU retaliated against U.S. tariffs on steel and aluminum, escalating tensions between the two economic powers.
The dispute began on Wednesday when the U.S. implemented a 25% tariff on aluminum and steel imports from the EU. In response, the European Union announced tariffs on approximately €26 billion ($28 billion) worth of U.S. goods, including agricultural products and iconic American beverages like bourbon. The EU condemned the U.S. tariffs as “unjustified,” further deepening the trade rift.
On his Truth Social account, President Trump reacted strongly to the EU’s countermeasures. He referred to the EU as “the most hostile and abusive taxing and tariffing authorities in the World,” and issued a stern warning. Trump stated that if the EU follows through with a planned 50% tariff on whisky, the U.S. will impose a 200% tariff on all alcoholic products, including wines and champagnes, from France and other EU countries. The President further claimed that the move would be beneficial for the U.S. wine and champagne industries.
“We 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 global alcohol market, which has faced difficulties in recent years, had been bracing for a “moderate recovery” in 2025, according to IWSR, a global provider of drinks data and insights. However, these new tariff threats have cast uncertainty on the future of the industry, particularly for U.S. businesses that rely on the import of European spirits.
Chris Swonger, President and CEO of the Distilled Spirits Council of the United States, voiced concerns about the impact of the proposed tariffs on the U.S. spirits industry. He urged President Trump to reach an agreement with the EU that would prevent further escalation and avoid harm to the U.S. economy.
“The U.S.-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997,” Swonger said in a statement. “The U.S. spirits sector supports more than $200 billion in economic activity, 1.7 million jobs across production, distribution, hospitality, and retail, and the purchase of 2.8 billion pounds of grains from American farmers.”
Swonger further emphasized the importance of returning to zero-for-zero tariffs, which would benefit the U.S. hospitality industry and American craft distillers who export their products. “We want toasts not tariffs,” he concluded.
The prospect of the new 200% tariff has left many in the U.S. alcohol industry anxious, as it could significantly disrupt trade relations and hurt both American and European businesses. As the U.S. and EU continue to clash over tariffs, the future of global alcohol trade remains uncertain, with both sides likely to face continued economic fallout.
