US President Donald Trump said on Thursday that he would put a 200 percent wine tariff on all wines and other alcoholic products coming out of the European Union if the bloc did not remove its tariff on whiskey.
The European Commission said on Wednesday that it will impose counter tariffs on €26 billion ($28 billion) worth of US goods from next month, ramping up a global trade war in response to blanket US tariffs on steel and aluminium.
The EU executive said, however, that it remained open to negotiations and considered higher tariffs in no one’s interest.
Trump raised the ante in a social media post on Thursday.
“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,” Trump wrote on Truth Social.
“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 U.S.”
Read moreWhat Trump’s transatlantic trade war would mean for Europe
US stock futures moved lower and shares of European spirits makers shares dropped.
Trump slapped similar tariffs on EU steel and aluminium during his first term in office, which enraged European and other allies. The EU also imposed countermeasures in retaliation at the time, raising tariffs on US-made motorcycles, bourbon, peanut butter and jeans, among other items.
The European Commission said it will end its current suspension of tariffs on US products on April 1 and that its tariffs will be fully in place by April 13.
(FRANCE 24 with Reuters and AP)
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