Trump's 200% Tariff Threat on EU Alcohol: What You Need to Know

Tue Oct 21 2025 04:14:35 GMT+0300 (Eastern European Summer Time)

President Trump escalates trade tensions by threatening a hefty tariff on EU alcohol imports in response to European tariffs on U.S. whiskey.

The ongoing trade war between the United States and the European Union takes a dramatic turn as President Trump threatens a 200% tariff on alcohol coming from the EU. This move comes after the EU announced plans to tax U.S.-produced whiskey as retaliation for U.S. tariffs on steel and aluminum imports. With both sides gearing up for a showdown, concerns are rising about the potential economic impact on both consumers and industries involved.

In a fierce tweet, Trump demanded the immediate removal of what he called the EU's "nasty" tariff, arguing that the bloc was "hostile and abusive." The European Commission has signaled talks are on the horizon to resolve the tensions. Currently, the U.S. imports over €4.5 billion worth of European wines and alcoholic beverages annually, with many industry representatives worried that Trump's threats could obliterate thousands of jobs and severely damage the market.

Amidst the rising stakes, the U.S. stock market has reacted negatively, with significant drops in major indexes like the S&P 500 and Dow Jones. Industry insiders and trade officials from both sides expect escalations could lead to full-blown negotiations, but there’s a growing fear that the dispute could impact consumers and businesses worldwide.