The escalating transatlantic trade conflict between the United States and the European Union has taken a dramatic turn, with U.S. President Donald Trump threatening to impose a 200% tariff on European wine, champagne, and spirits in retaliation for revived EU duties on American whiskey. While the EU had initially imposed a 50% tariff on U.S. whiskey during Trump’s first term—responding to U.S. tariffs on steel and aluminum—it had suspended the duty at the end of 2021 as part of a temporary trade truce. That suspension, however, was due to expire at the end of March 2025.
The EU planned to reinstate the whiskey tariff starting April 1, 2025, as part of a two-stage response to renewed U.S. trade measures.
Trump’s response was characteristically blunt. Posting on his platform Truth Social, he wrote: “If the EU does not immediately drop the ugly 50 percent import tariff on US whiskey, the United States will impose 200 percent on wine, champagne, and other alcoholic beverages from France and other EU countries.”
Why Trump, a known teetotaler and tariff enthusiast, has focused his ire on French alcohol remains unclear. Speculation points to a recent speech by French Senator Claude Malhuret, who likened Trump to Emperor Nero and labeled Elon Musk a “court jester on ketamine.”
The trade dispute now directly threatens a multi-billion USD alcohol trade. According to Gabriel Picard of the French Federation of Exporters of Wines and Spirits, France alone exports around USD 4.3 billion worth of wine and spirits to the U.S. annually. A 200% tariff would effectively destroy this market: “With 200% duties, there is no more market,” Picard warned (AP).
In the Champagne region, third-generation winemaker David Levasseur voiced deep concern. “It means I’m in trouble, big trouble,” he said, adding that his exports to the U.S. would likely stop entirely under such conditions.
Italy, whose wine exports to the U.S. exceeded USD 2.2 billion in 2024, is similarly alarmed. Piero Mastroberardino of Federvini noted that any tariff would drive prices to “unthinkable levels,” particularly for premium wines sold in top U.S. restaurants.
Spanish producers echoed those fears. Mireia Pujol-Busquets, owner of Alta Alella near Barcelona, warned that her business could lose 25,000 bottles in sales if the U.S. market collapses.
In Washington, Chris Swonger, president of the Distilled Spirits Council, welcomed the EU's delay and urged both sides to restore the “zero-for-zero” tariff arrangement that had governed transatlantic spirits trade since 1997.
Trump’s threats are alienating allies on both sides of the Atlantic. The financial stakes are considerable: in 2024, the EU exported nearly EUR 5 billion in wine to the U.S., 40% of which came from France. Among the companies potentially hit is LVMH, owner of Moët & Chandon and Hennessy. Majority owner Bernard Arnault, who once attended Trump’s inauguration, may now face heavy losses.
But following Trump's retaliatory threat, the EU announced on March 20 that it would delay implementation until April 13 to allow for further negotiations.
Whether a new agreement can be reached remains uncertain. Trump’s track record in enforcing tariffs has been unpredictable. But if no deal is found, stories of underground parties with smuggled French Champagne in the Hollywood Hills may soon become a modern Prohibition tale.
