Trump threatens 200% tariff on European alcohol

US President Donald Trump is now threatening a 200% tariff on European alcohol in response to the European Union's retaliation against U.S. steel and aluminum tariffs.

Trump also sharpened his rhetoric toward the E.U., which has for decades been one of the closest U.S. allies.

The 25% tariff on aluminum and steel went into effect on Wednesday — a move that the EU calls unjustified. In response, the EU announced tariffs on €26 billion ($28 billion) worth of U.S. goods, including agricultural products and bourbon.

Posting on his Truth Social account, Trump called the EU "the most hostile and abusive taxing and tariffing authorities in the World." 

The global alcohol market has faced a challenging past few years, but was expecting a 2025 that promised "moderate recovery," according to IWSR, a global drinks data and insight provider. But that was before the threatened tariffs. 

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, urged Trump to reach an agreement with the EU that avoids any further tariffs and harm to the U.S. spirits industry.