President Donald Trump has threatened to slap a 200 percent tariff on alcohol from France and other European Union-represented nations.
Trump said in a March 13 Truth Social post that the European Union issued a 50 percent tariff on whisky from the United States.
If European officials do not remove these counter-tariffs, the United States will impose a 200 percent levy on wines, champagnes, and other alcohol products from France and other EU member states.
“This will be great for the Wine and Champagne businesses in the U.S.,” Trump said.
The European Commission announced on March 13 that it would initiate retaliatory measures in response to the administration’s 25 percent tariffs on steel and aluminum imports. These actions included ending suspensions on previous levies on U.S. goods and implementing new levies.
The EU’s tariffs will cover about $28 billion worth of U.S. products, such as agriculture, apparel, home appliances, and motorcycles.
Despite these efforts, the 27-nation bloc “will always remain open to negotiations,” European Commission President Ursula von der Leyen said. Trade Commissioner Maros Sefcovic is in charge of talks with the United States.
“The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate,” von der Leyen said in a statement.
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers.”
The EU’s counter-tariffs are set to go into effect on April 1.
Shares of Brown Forman, the parent company of Jack Daniels, rose more than 1 percent on the news, though the stock is down more than 6 percent this year.
Trump, alongside Irish Prime Minister Micheal Martin, said that the United States will charge countries whatever they charge the world’s largest economy.
“Nobody can complain about that,” adding that the EU was designed “to take advantage of the United States.”
In an interview with Bloomberg TV after Trump’s social media announcement, Commerce Secretary Howard Lutnick defended the president’s latest threat.
“If you make him unhappy, he responds unhappy,” he said.
“Their tariffs are way up here, and our tariffs are down here. How about: Relax. Let us balance it.”
The administration has complained about the disparity between European and American tariff rates, describing it as unfair. For example, the EU maintains a 10 percent levy on American automobiles entering the overseas market. Conversely, the U.S. tariff rate on European vehicles entering the country is 2.5 percent.
Lutnick, speaking in a weekend interview with CBS News, criticized Europe over its value-added tax (VAT) and other non-trade barriers.
“Reciprocal tariffs are the baseline, and the countries of the world like Europe have a 20 percent VAT,” he said.
“You know how many cars, American cars, we sell in Europe, or in Korea, or Japan? Try buying a Chevrolet in Germany.”
White House officials have taken exception over the bloc’s VAT, which differs from a sales tax, calling it a “double whammy” for U.S. exports.
A VAT is a consumption-based tax applied to the value added in every stage of production or distribution of goods and services. It ranges from 17 percent to 27 percent and accounts for a significant portion of revenue for EU members.
“There’s a reason why Germany sells us eight times more cars than we sell them, and it’s certainly not American craftsmanship or quality or anything else,” a White House official told reporters in a call last month.
From The Epoch Times
