Moet champagne bottles are seen at Berlin Brandenburg airport in Schonefeld, Germany on February 24, 2025.
Jakub Porzycki | Nurphoto | Getty Photos
U.S. President Donald Trump mentioned Thursday he plans to place a 200% tariff on alcohol from France and different European nations within the newest escalation of world commerce tensions.
The U.S. tariff comes after the European Union moved to reinstate an import tax on American whiskey.
“The European Union, probably the most hostile and abusive taxing and tariffing authorities within the World, which was shaped for the only function of profiting from the US, has simply put a nasty 50% Tariff on Whisky. If this Tariff just isn’t eliminated instantly, 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 probably be nice for the Wine and Champagne companies within the U.S.,” Trump mentioned on Fact Social.
On Tuesday, the European Fee introduced that it was retaliating in opposition to U.S. tariffs on metal and aluminum by lifting the suspension on earlier levies on U.S. items, together with whiskey, and imposing new ones.
“The European Union should act to guard customers and enterprise. The countermeasures we take at present are robust however proportionate,” Ursula von der Leyen, president of the European Fee, mentioned Tuesday.
The information Thursday appeared to place strain on European liquor shares, which have already been struggling lately.
Paris-traded shares of LVMH Moet Hennessy Louis Vuitton, the most important luxurious model firm on this planet and headed by billionaire Bernard Arnault, the richest man in Europe, fell for a ninth day Thursday, dropping 14% because the finish of February. Remy Cointreau eased for a 3rd day, bringing its loss to nearly 11% in that stretch. Pernod Ricard weakened for a 3rd day, and is down greater than 6% since Monday’s shut.
The commerce conflict seems to have additionally taken a chew out of U.S. alcohol shares. Shares of Jack Daniels mother or father Brown Forman are down greater than 7% this week.
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