Donald Trump threatens 200% tariffs on alcohol from EU countries

LAST UPDATE | 20 hrs ago

TAOISEACH MICHEÁL MARTIN has predicted difficulties for the Irish spirits industry if the EU does not take a “strategic approach” over tariffs. 

US President Donald Trump has threatened to impose 200% tariffs on wine, champagne and other alcoholic products European Union countries.

He threatened the move in retaliation against an EU decision to impose 50% levies on US-produced whiskey.

“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 EU Represented Countries,” he posted on his Truth Social platform.

Trump has launched trade wars against competitors and partners since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.

It’s unclear if Trump will keep his pledge on alcohol tariffs.

Yesterday he backed down from a plan to double steel and aluminium tariffs for Canadian imports. He still imposed tariffs of 25%, however.

Taoiseach says alcohol tariffs not discussed with Trump

Taoiseach told reporters in Washington DC this afternoon that alcohol tariffs were not specifically discussed during the meeting, but added that the only way to resolve a deepening trade dispute between the US and EU is “through dialogue”.

He said: “Tariffs increase inflation and are not good for the consumer and are not good for business, and that is our view.

“But I do believe there will be some distance to go yet. There will be an EU Council towards the end of next week, and again, there will be discussions and consultations within the European Union in respect of European actions.

“And obviously, again, in that scenario, we’ll be endeavoring to protect Irish interests in terms of specific Irish products and Irish sectors.”

He added: “One would hope that this would settle in time, but the uncertainty does create difficulties for business, does create difficulties for investment decisions, and that certainly is challenging.

“Businesses will have to adapt as this evolves, and Government will work with business.”

The Taoiseach said Ireland will engage with the European Commission over the effect of threatened tariffs, adding: “Our view is that there needs to be a more strategic position.”

On Wednesday, the European Union announced its own new tariffs, hitting some $28 billion of US goods in stages from April. President of the Commission Ursula von der Leyen said the taxes were “strong but proportionate”.

“In the meantime, the EU remains ready to work with the US administration to find a negotiated solution,” the commission said in a statement.

“The above mentioned measures can be reversed at any time should such a solution be found.”

But Trump renewed his criticism of the bloc this morning, singling out a 50% levy on US whiskey as being “nasty.”

He termed the EU “one of the most hostile and abusive taxing and tariffing authorities in the World” and said it “was formed for the sole purpose of taking advantage of the United States”.

Speaking today at a summit in Cape Town between the EU and South Africa, European Commission head Ursula von der Leyen said the EU is ready to negotiate with the US.

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“We don’t like tariffs because we think that tariffs are taxes, and they are bad for business and they’re bad for consumers,” von der Leyen told reporters in South Africa.

“We’ve always said that we will, at the same time, defend our interests,” she said. But, “I also want to emphasise that we are open for negotiations.”

The bloc’s trade commissioner was in contact with his counterpart in the United States and they were expected to have a phone call tomorrow on the tariff row, von der Leyen said.

‘Toasts not tariffs’

The Irish Whiskey Association immediately voiced concerns about the possible move, noting that the export value of Irish drinks to the United States is over €800 million a year.

“There is no winner in a trade war. The imposition of tariffs will impact on our businesses and our consumers,” the group said.

It warned that high tariffs in the sector could result in job losses and investment cuts, and could place businesses at risk.

“The need to remove spirits from this dispute is immediate, and the clock is ticking,” the group added.

Speaking from Washington, Eoin Ó Catháin, director of the Irish Whiskey Association, told reporters that Trump’s post on Truth Social is “very concerning for the Irish whiskey and spirit sector”.

“We should note that President Trump’s post today comes on foot of the European Commission announcing yesterday they were planning on putting a 50% tariff on US whiskey,” added Ó Catháin.

He said the sector has “great cooperation with our counterparts here in DC” and that “we’re all of the same opinion that there’s no winner when tariffs get involved”.

He remarked that there has been “reciprocal, zero-for-zero trade since 1997″ and that the Irish Whiskey Association “wants to make sure now that we don’t change that”.

Meanwhile, Ó Catháin noted that while announcements have been made, “there’s been no tariff implemented and that gives us a window of opportunity for a dialogue to start”.

“We know we’ll have the support from the Irish government to start those discussions,” said Ó Catháin, “but we have work to do to make sure that it doesn’t get to that.”

Distilled Spirits Council, the US representative group, also urged Trump to work back towards a “zero-for-zero” model for international alcohol sales. 

“We want toasts not tariffs.”

The council’s head Chris Swonger said it is not in America’s interest to maintain the trade war.

“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” he said in a statement.

Uncertainty over Trump’s trade plans and worries that they could trigger a recession have roiled financial markets. US stocks opened lower today, following the lead of Asian markets, although European markets rose.

Spirits Europe, the European spirits trade group, called on both the EU and US to stop using the sector as a “bargaining chip” war.

Contains reporting from Jane Matthews.

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