President Donald Trump has threatened to impose a 200% tariff on all wines and alcoholic products from Europe if the European Union does not cancel its planned tax on American whiskey. This move comes in response to the EU’s decision to impose counter tariffs on $28 billion worth of U.S. goods due to U.S. tariffs on steel and aluminum. Despite this escalation, the EU remains open to negotiations, stressing that higher tariffs are in no one’s interest.

In a social media post, Trump criticized the EU for imposing a 50% tariff on whiskey and warned of the potential 200% tax on European alcoholic products if the situation is not resolved promptly. This threat could significantly impact EU wine exports to the U.S., which were valued at 4.9 billion euros last year, with France and Italy being major exporters.

The looming trade tensions have already affected stock markets, causing U.S. stock futures to drop and European spirits makers’ shares to decline. Trump’s tariff policies have raised concerns about economic instability and strained relationships with trading partners like Canada.

The European Commission plans to implement tariffs on various U.S. goods from April, including industrial and agricultural products, textiles, and food items. The Commission’s decision has sparked backlash from Europe’s spirits and cosmetics industries, highlighting the risks posed to transatlantic trade relations in these sectors.

As the trade dispute unfolds, the global economic landscape remains uncertain, with implications for businesses, consumers, and investors worldwide.