On March 13, 2025, U.S. President Donald Trump announced plans to impose a 200% tariff on alcohol imports from France and other European nations. This decision follows the European Union’s reinstatement of an import tax on American whiskey, escalating ongoing trade tensions between the U.S. and EU.
- Moet champagne seen at Berlin airport
- Trump plans 200% tariff on European alcohol
- EU reinstates import tax on American whiskey
- U.S. to announce more reciprocal tariffs in April
- European liquor stocks pressured by trade tensions
- U.S. alcohol stocks also affected negatively
Trump criticized the EU’s tariffs as “hostile” and stated that if the whiskey tariff is not removed, the U.S. will proceed with its own significant tariffs on wines and champagnes.
The recent escalation in trade tensions comes after the European Commission announced it would lift a suspension on previous levies against U.S. goods, including whiskey, in retaliation for U.S. tariffs on steel and aluminum. Ursula von der Leyen, president of the European Commission, emphasized that these countermeasures are necessary to protect consumers and businesses within the EU.
Key details include:
- The proposed U.S. tariff would affect all wines, champagnes, and alcoholic products from France and other EU countries.
- This move is seen as a direct response to a newly imposed 50% tariff by the EU on American whiskey.
- U.S. Commerce Secretary Howard Lutnick noted Trump’s frustration with the EU’s actions during an interview.
The announcement has already affected stock prices for several major European liquor companies. Shares of LVMH Moet Hennessy Louis Vuitton fell for nine consecutive days, dropping 14% since late February. Similarly, Remy Cointreau and Pernod Ricard have also experienced declines in their stock prices amid these developments. Conversely, shares of Brown Forman, which owns Jack Daniels, have decreased over 7% this week due to concerns about retaliatory tariffs impacting sales.
This latest development underscores growing friction between the U.S. and Europe regarding trade policies that could significantly affect both markets for alcoholic beverages moving forward.
