Trump threatens 200% of the EU alcohol rate

The president of the United States, Donald Trump, has threatened with a 200% tariff on any alcohol that reaches the United States from the European Union (EU) in the last turn of an intensive commercial war.

The threat is an answer to EU’s plans for a 50% tax on whiskey imports produced in the United States as part of their reprisals to Trump’s. tariffs on all imports of steel and aluminum to the United States.

The president of the United States requested the immediate elimination of the EU “unpleasant” rate on the American whiskey, calling the “hostile and abusive” block and “formed with the sole purpose of taking advantage of the United States.”

A spokesman for the European Commission said that “calls are being prepared” between the United States and the EU to discuss the situation.

He confirmed that his Commissioner of Commerce, Maroš šefčovič, had “contacted his American counterparts” after Trump’s last threat.

The confrontation marked another escalation of a commercial war that has shaking financial markets And he raised concerns about the impact on economies and consumers in many countries of the world, including the United States.

Europe sends more than € 4.5 billion ($ 4.89 billion; £ 3.78 billion) of wine every year to the US, which is its largest export market, according to the Européen des Enterprises Vins committee, which represents the European wine industry.

Ignacio Sánchez Rerarte, general secretary of the group, said that if Trump continue with his threats, he would destroy the market, costing thousands of jobs.

“There is no alternative to sell all this wine,” he said, pleading with the two parts that “keep the wine out of this fight.”

The last shock occurred after the new American tariffs on steel and aluminum entered into force on Wednesday, reaching metal imports with a general duty of 25% and end the exemptions of the tasks that the United States had previously granted the shipments of some countries, even from the EU and Canada.

Canada and Europe, which are among the largest commercial partners in the United States, called new unjustified taxes and their own tariffs on a variety of American products are returned. EU measures must enter into force on April 1.

He Clash repeats a battle that developed during Trump’s first mandate, when she announced tariffs for the first time about steel and aluminum.

The EU responded with its own tariffs, including a 25% tax on American whiskey.

Then, the Sales of the EU whiskey fell 20%, falling from approximately $ 552 million in 2018 to $ 440 million in 2021, according to the distillered Spirits Council of the United States. Trump in turn

The tariffs rose after Trump left the position, after the two parties reached an agreement that exempt a certain amount of European metals of the duties.

But Trump has indicated little appetite to make deals so far, at least when it comes to steel and aluminum.

“If this rate is not immediately eliminated, the United States will soon teach a 200% rate on all wines, shampas and alcoholic products that leave France and other countries represented from the EU,” he wrote on social networks, using all capital letters for some of the messages.

The orientation of wine and whiskey is symbolic: there are few more iconic consumer products than the Bordeaux of French or the tennessee whiskey. From the point of view of the value, beverage trade is less than some of the other items that face rates.

But Mary Taylor, an importer of European wines based in the USA.

“It seems a great giant threat to our livelihoods,” he said.

Mrs. Taylor, who contributes 2 million bottles a year, resisted the 25% rate that Trump put in certain EU bottles during her first mandate by expanding her distribution in Europe, but said: “200% is a completely different ball game.”

The actions in the United States fell on Thursday.

The S&P 500 fell almost 1.4%, which reduced approximately 10% of its most recent peak, a milestone known as correction. The Dow fell 1.3%, while Nasdaq fell almost 2%.

In Europe, the FTSE 100 in London was flat, while Dax of Germany ended approximately 0.5% lower.

In Paris, CAC 40 fell 0.6%, since the actions of the main spirit manufacturers were achieved, with 4%Pernod Ricard and Cognac Hennessy LVMH manufacturer falling 1.1%.

In interviews with the US business media. Uu. On Thursday, the White House officials blamed the EU for increasing the dispute.

“Why are Europeans chosen in Kentucky Bourbon or Harley-Davidson motorcycles? It is disrespectful,” said Secretary of Commerce Howard Lutnick to Bloomberg Television, which describes the return to the right as “outside the subject.”

The Treasury Secretary, Scott Besent, warned that a commercial war would probably inflict more economic pain to the EU than in the United States, dismissing the concerns that the clash could spiral.

“One or two articles, with a negotiation block: I’m not sure why it is a big problem for markets,” he said.

In an interview with the BBC hardtalk, the president of the European Central Bank, Christine Lagarde, said the EU had no “other option” to take reprisals.

“At this time, everyone is positioning,” he said, adding that he expected the two parties to sit and negotiate.

“Everyone will suffer” if the dispute became a complete commercial war, he warned.

Until now, Trump has shown little tolerance to the reprisals of the countries on the rates he has introduced.

Earlier this week, he criticized Canada with the threat of a 50% rate on its steel and aluminum after the Canadian province of Ontario responded to the new tariffs with a surcharge for electricity exports to the United States.

He terminated that threat after Ontario agreed to suspend the charges.

Trump’s former advisor Stephen Moore, now an economist at the Heritage Foundation, said he thought the EU would have to make a concession to calm the situation, noting that Trump had constantly expressed concerns about the rules about agricultural products.

“Absolutely this will end with a deal,” he said. “It’s just a question if it ends in an agreement in a day, a week, a month or six months, but eventually there will be a negotiated agreement.”

The Full Hardtalk will be available from March 14 on the BBC news channel, Iplayer, The World Service and as Podcast.