Trump threatens tariffs on European wine and spirits in escalating trade war
Trump raised the ante a day after the European Commission said it will impose counter tariffs on €26 billion (US$28 billion) worth of US goods
US President Donald Trump on Thursday threatened to slap a 200 per cent tariff on wine, cognac and other alcohol imports from Europe, opening a new front in a global trade war that has roiled financial markets and raised recession fears.
Stocks fell on the news, as investors worried that Trump would enact stiffer trade barriers around the world’s largest consumer market.
“The Entire World is RIPPING US OFF!!!” Trump wrote on his Truth Social platform.
Trump’s threat came in response to a European Union plan to impose tariffs on American whiskey and other products next month – which itself is a response to Trump’s 25 per cent tariffs on steel and aluminium imports that took effect on Wednesday. The European Commission had no immediate comment on Trump’s post.
Canada, a neighbour and close ally that is the US’ biggest aluminium provider, has also announced countermeasures of its own to Trump’s metals tariffs.
02:18
Trudeau tells Trump that tariffs are 'very dumb,' says Canada is striking back
Alcohol is shaping up to be a key friction point in the trade war Trump has launched since returning to the White House in January.
