Tensions over trade are rising across the Atlantic. US President Donald Trump is threatening a 200 percent tariff on European wine and champagne after the European Union took aim at American whiskey.
Trump said Thursday he will place the levy on European alcohol imports, if the bloc fails to lift its 50 percent whiskey tax. That was in retaliation for 25 percent tariffs that Trump had slapped on steel and aluminum on Wednesday.
He also accused the EU of being one of the “most hostile” and “abusive taxing and tariffing authorities.”
A French wine and spirits organization said the US is the biggest foreign market for French winemakers. It accounts for 20 percent of export sales.
The French trade minister, Laurent Saint Martin, is upset by the latest US action. He says Trump has been escalating the trade war he started, adding that France and its partners will not yield to the threats.
Canada continues to be frustrated with Trump’s chaotic moves on trade. It has initiated a dispute complaint with the World Trade Organization on the metal tariffs.