President Donald Trump’s trade war is escalating—and this time, champagne is in the crosshairs.
First, Trump imposed 25% tariffs on global steel and aluminum imports, which could impact $28 billion of European Union exports, according to the New York Times. “We deeply regret this measure. Tariffs are taxes. They are bad for business, and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. Nobody needs that – on both sides, neither in the European Union nor in the United States,” Ursula von der Leyen, president of the European Commission, said. “The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the United States are applying tariffs worth USD 28 billion, we are responding with countermeasures worth EUR 26 billion.”
Maros Sefcovic, the European Commission’s Trade Commissioner, said the tariffs, which include a 50% duty on U.S. bourbon, were avoidable “if the U.S. administration accepts our extended hand.” He also said he was ready to negotiate.
However, instead of negotiating, Trump is escalating the trade war. “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,” Trump wrote on his “Truth Social” profile today in response to the EU’s proposed tariffs. “This will be great for the Wine and Champagne businesses in the U.S.”
French Trade Minister Laurent Saint-Martin said France would “fight back” on the “trade war [Trump] has chosen to start.” He added, “We will not give in to threats and will always protect our industries.”
According to CNN, alcoholic beverages are one of the EU’s top exports to the States.
Emily Burack (she/her) is the Senior News Editor for Town & Country, where she covers entertainment, celebrities, the royals, and a wide range of other topics. Before joining T&C, she was the deputy managing editor at Hey Alma, a Jewish culture site. Follow her @emburack on Twitter and Instagram.