President Donald Trump recently threatened a 200% tariff on all European alcohol if the European Union (EU) implements an American whiskey tariff. The EU has planned this alcohol tariff in response to the steel and aluminum tariffs announced by Trump.
Trump Threatens Alcohol Tariff
The President certainly is firm about this idea, and that the tariff would help US alcohol producers. Trump posted on social media, “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 E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.” When Trump announced this, European alcohol stocks decreased.
European Commission President Ursula von der Leyen said she would be open to conversations with the US. She said “We don’t like tariffs because we think tariffs are taxes and they are bad for business and they are bad for consumers.” She went on to say “We have always said at the same time that we will defend our interests. We’ve said it, and we’ve shown it, but at the same time I also want to emphasize that we are open for negotiations.”
If Trumps alcohol tariff is implemented all European wines and champagnes would skyrocket in price. A $15 bottle of Italian Prosecco could be priced as high as $45 for American consumers. Europeans would also be paying higher prices for US alcohol. A 30 euro bottle of bourbon could be as expensive as 45 euros.
Alcohol Business Owners Worried
The alcohol industry isn’t feeling confident about the new potential changes. The industry is already experiencing layoffs, at least in the Kentucky Bourbon sector. Holly Seidwand, owner of First Fill Spirits, an alcohol shop in Saratoga Springs, New York, isn’t excited. She said “this ongoing tariff war doesn’t just harm importers — it weakens domestic brands, disrupts distributors, and squeezes retailers who rely on global selections.” She also added that “in the end, consumers will bear the brunt of it all.”
Gabriel Picard from the French Federation of Exporters of Wines and Spirits said this alcohol tariff would be a “hammer blow” for the alcohol industry. Picard said that the US market is worth about $4.3 billion annually just for French wines and spirits. He said “Not a single bottle will continue to be expedited if 200% tariffs are applied to our products. All exports to the United States will come to a total, total, halt,” and that “with 200% duties, there is no more market.”
Chris Swonger, President and CEO of Distilled Spirits Council said “We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector.”
Alcohol business owners are on the edge of their seat to see what happens. Meanwhile, many consumers are rushing to the liquor store to stock up before a potential price increase.
Featured Image Credit: Chris F; Pexels: Thank You!
