Trade war with E.U. may send wine, champagne prices skyrocketing
President Trump has threatened a 200% tariff on alcohol coming out of the E.U.
Transcript:
Caroline Woods: Alcohol was already getting more expensive thanks to newly imposed tariffs, but the ongoing trade war between the U.S. and European Union is only making it worse.
After President Trump implemented a 25% tariff on aluminum and steel on March 12, the E.U. immediately retaliated with a 50% tariff on U.S. spirits. Now, Trump is threatening to hit them back four-fold.
In a post on his Truth Social platform, the President said “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.”
Related: How investors should actually think about tariffs
The United States currently buys half of its wine from the European Union, with both Italy and France sending more than $2 billion worth of exports to the states in 2024. It also imports 23% of its distilled spirits and 14% of beer from the region.
However, Trump claims only good can come from the potential retaliation, posting “This will be great for the Wine and Champagne businesses in the U.S.”
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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