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US President Donald Trump early Thursday morning threatened tariffs on major US trading partners, including the European Union and their alcoholic beverage industry, particularly France and its vineyards.
Trump’s latest warning to impose tariffs on what the EU exports to the US comes after the bloc yesterday imposed their own levies on American whiskey in retaliation for the US President’s earlier tariffs on imports of aluminum and steel.
In a post on Truth Social, the social media platform he owns, Trump wrote, “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky. 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. This will be great for the Wine and Champagne businesses in the US”.
Calling the tariffs imposed by the US on EU steel and aluminium imports “unjustified, disruptive to transatlantic trade, and harmful to businesses and consumers, often resulting in higher prices,” the bloc had on Wednesday announced that it would launch “swift and proportionate countermeasures” on US imports into the European Union.
According to the statement, the EU Commission will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse on April 1. These countermeasures target various US products that respond to the economic harm done on 8 billion Euros of EU steel and aluminium exports.
In response to US tariffs affecting over EUR 18 billion of EU exports, the EU Commission is putting forward new countermeasures on US exports. The new countermeasures will come into effect by mid-April, following consultation of Member States and stakeholders.
In a statement, the EU Commission stated, “In total, the EU countermeasures could therefore apply to US goods exports worth up to EUR26 billion, matching the economic scope of the US tariffs. In the meantime, the EU remains ready to work with the US administration to find a negotiated solution. The abovementioned measures can be reversed at any time should such a solution be found.”
European Commission President Ursula von der Leyen called the trade ties between the EU and the US “biggest in the world” and added that they have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic.
“As of this morning the United States is applying a 25% tariff on imports of steel and aluminium. We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business,” she said.
“The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion Euros. This matches the economic scope of the US tariffs. Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April,” she added.
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