Trump threatens 200% wine tariff if EU does not relent on whiskey

U.S. President Donald Trump on Thursday threatened to slap a 200% tariff on all wines and other alcoholic products coming out of Europe if the European Union does not scrap its planned tax on American whiskey.

Ramping up a global trade war in response to blanket U.S. tariffs on steel and aluminum, the European Commission said on Wednesday that it will impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.

The EU executive said, however, that it remained open to negotiations and considered higher tariffs in no one's interest.

Trump raised the ante in a social media post on Thursday.

"The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky," Trump wrote on Truth Social.

If the tariff is not removed immediately, Trump said, the United States would soon place a 200% tax on all wines, champagnes and other alcoholic products coming out of France and other EU countries.

"This will be great for the Wine and Champagne businesses in the U.S.," he wrote.

EU wine exports to the United States were worth 4.9 billion euros last year, according to EU statistics agency Eurostat. That was 29% of EU's overall exports of wine. Of the EU exports to the United States, France made up almost half and Italy almost 40%.

U.S. stock futures moved lower and shares of European spirits makers dropped.

Trump's hyper-focus on tariffs has rattled investor, consumer and business confidence and raised recession fears. He also has frayed relations with Canada, a close ally and major trading partner, by repeatedly threatening to annex the neighboring country.

The European Commission said it will end its current suspension of tariffs on U.S. products on April 1 and that its tariffs will be fully in place by April 13.

The European Commission had no immediate comment on Trump's post.

Europe's spirits and cosmetics industries hit back at the European Commission's plan to slap tariffs on U.S.-made goods on Wednesday, saying it put the continent's far larger trade with the United States in those sectors at risk.

Other products targeted by the EU include industrial and agricultural products, such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar and vegetables.