Trump Proposes 200% Tariffs on European Wine and Champagne
Threats by the U.S. President escalate trade tensions with the EU amidst reciprocal tariff measures.
The President of the United States, Donald Trump, has intensified trade tensions between Washington and Brussels by threatening to impose a 200% tariff on European wine and champagne.
This announcement, made on his social media platform Truth Social, comes in response to recent countermeasures announced by the European Union aimed at U.S. products, including whisky.
Trump characterized the EU as 'one of the most hostile and abusive authorities in the world,' demanding the immediate rescindment of the proposed tariffs.
In his social media post, Trump stated, 'If this tariff is not removed immediately, the United States will shortly impose a tariff of 200% on all wines, champagnes, and alcoholic products coming from France and other countries represented by the EU.'
Following the announcement, shares of several alcoholic beverage manufacturers saw a significant drop, with French luxury conglomerate LVMH, owner of brands such as Veuve Clicquot and Moët & Chandon, leading the declines with a 2% decrease after previously trading positively during the session.
The European Commission has estimated that its initial set of tariffs, scheduled to take effect on April 1, will cost the U.S. economy approximately $28 billion.
The focus of the EU's tariffs includes iconic American exports such as whisky and Harley-Davidson motorcycles.
Additionally, Trump claimed in another post that 'money related to tariffs is flowing into the United States' and that 'the entire world is cheating us.' He made statements regarding the declining prices of eggs, oil, and interest rates, although current data indicates that the price of a dozen eggs has surged to a high of $4.95 in the U.S. The U.S. Department of Agriculture predicts that food prices could rise by 40% by 2025, contradicting the President's assertions.
The EU's announcement of tariffs was a retaliatory measure to earlier tariffs imposed by Washington on approximately $18 billion worth of goods from the European metal industry.
Furthermore, the European Commission has indicated it will begin discussions with member states to extend the proposed tariffs to include U.S. agricultural products.
This announcement, made on his social media platform Truth Social, comes in response to recent countermeasures announced by the European Union aimed at U.S. products, including whisky.
Trump characterized the EU as 'one of the most hostile and abusive authorities in the world,' demanding the immediate rescindment of the proposed tariffs.
In his social media post, Trump stated, 'If this tariff is not removed immediately, the United States will shortly impose a tariff of 200% on all wines, champagnes, and alcoholic products coming from France and other countries represented by the EU.'
Following the announcement, shares of several alcoholic beverage manufacturers saw a significant drop, with French luxury conglomerate LVMH, owner of brands such as Veuve Clicquot and Moët & Chandon, leading the declines with a 2% decrease after previously trading positively during the session.
The European Commission has estimated that its initial set of tariffs, scheduled to take effect on April 1, will cost the U.S. economy approximately $28 billion.
The focus of the EU's tariffs includes iconic American exports such as whisky and Harley-Davidson motorcycles.
Additionally, Trump claimed in another post that 'money related to tariffs is flowing into the United States' and that 'the entire world is cheating us.' He made statements regarding the declining prices of eggs, oil, and interest rates, although current data indicates that the price of a dozen eggs has surged to a high of $4.95 in the U.S. The U.S. Department of Agriculture predicts that food prices could rise by 40% by 2025, contradicting the President's assertions.
The EU's announcement of tariffs was a retaliatory measure to earlier tariffs imposed by Washington on approximately $18 billion worth of goods from the European metal industry.
Furthermore, the European Commission has indicated it will begin discussions with member states to extend the proposed tariffs to include U.S. agricultural products.
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