Trump threatens 200% tariff for alcohol with the EU

US President Donald Trump threatened 200% tariffs for any alcohol coming to the United States from the European Union (EU) in the last turn of the trading war.

The threat is a reaction to EU plans by 50% of the tax imported tax produced in the US, as part of its revenge on Trump Tariffs for all imports of steel and aluminum to the US.

The US president has called for a “EU’s unpleasant” tariff immediately to call the US whiskey, calling the “hostile and offensive” block and formed for the sole purpose of using the United States.

A press secretary of the European Commission said that “calls” are being prepared between the US and the EU for discussion.

He confirmed that his commissioner for trade, Moraz Shefchovich, “addressed his American colleagues” after Trump’s last threat.

The confrontation noted the next escalation of the trade war that has Persened financial markets And it is concerned about the impact on economics and consumers in many countries, including the United States.

Europe sends more than 4.5 billion euros to the United States ($ 4.89 billion; 3.78 billion pounds), which is its largest export market, according to Comité European Des Entreprises Vins, representing the European wine industry.

Ignasio Sanchez Recortex, Secretary General of the group, said that when Trump survived his threats, it would destroy the market by costing thousands of jobs.

“There is no alternative to sell all this wine,” he said, asking with two sides to “avoid fault of this struggle.”

The last collision occurred after the new US tariffs on steel and aluminum came into force on Wednesday, resulting in importing metals with a current 25% and stopping off duties previously provided for deliveries from some countries, including the EU and Canada.

Canada and Europe – among the largest trading partners in America – are called new taxes, unjustified and hit with their own tariffs on various American products. EU measures must be in force on 1 April.

A The collision repressed the battle that was played during the first term of Trump when he first announced tariffs for steel and aluminum.

The EU responded with its own tariffs, including 25% of the US whiskey tax.

After the sales of whiskey in the EU decreased by 20%, falling from approximately $ 552 million to $ 440 million in 2021, the US distilled spirits reports. Trump in turn

The tariffs were lifted after Trump left office after both sides reached an agreement that released a certain amount of European metals.

But Trump still said that at least when it comes to steel and aluminum.

“If this tariff is not deleted immediately, the US will soon post 200% of the tariff for all the guilt, champagne and alcoholic products that come out of France and other EU countries,” he wrote in social media, using all capital letters.

Countering wine and whiskey symbolically – little consumer goods are more iconic than French Bordeaux or Tennese Whiskey. In terms of value, the trade in drinks costs less than some other items facing the tariffs.

But Mary Taylor, American importer of European wines, said the measures would be catastrophic for its business and industry, with an impact that would throb on restaurants, bars and distributors throughout the United States.

“It’s just like a great, giant threat to our livelihood,” she said.

Ms Taylor, who brings 2 million bottles a year, has withstood a 25% tariff for Trump, dressed for certain EU bottles during her first term, expanding the spread in Europe, but she said: “200% is a completely different sword game.”

Stocks in the US fell again on Thursday.

The S&P 500 decreased by almost 1.4%, reducing approximately 10% of the last peak – a milestone known as a correction. Dow dropped by 1.3%, and NASDAQ decreased by almost 2%.

In Europe, the London FTSE 100 was equal and Germany Dax ended by approximately 0.5% below.

In Paris, CAC 40 decreased by 0.6%when the stocks of large spiritual manufacturers were impressed, with Pernod Ricard decreased by 4%and the manufacturer of cognac Hennessy LVMH decreased by 1.1%.

In an interview with US business media, the White House was accused of escalation of disputes on Thursday.

“Why do Europeans choose Kentucky Bourbon or Harley Davidson on motorcycles?

The secretary of the Treasury Scott Igent warned that the trade war probably inflicts the EU more economic pain than in the US, rejecting the concern that the collision could spiral.

“One -two items with one trading block – I’m not sure why it’s a big deal for markets,” he said.

In an interview with Hardtalk BBC, European Central Bank President Christina Lagarde said the EU “no choice” except revenge.

“At the moment, everyone is located,” she said, adding that both sides will sit and agree.

“Everyone will suffer” when the dispute is out of the completely crushed trade war, she warned.

So far, Trump has shown little tolerance to the revenge of the countries over the tariffs he introduced.

Earlier this week, he undermined Canada with a threat of 50% of the tariffs for steel and aluminum form after the Canadian Ontario province responded to new tariffs with electricity exports to the US.

He abolished this threat after Ontario agreed to suspend the allegations.

Former Trump adviser Stephen Moore, who is now an economist of the Heritage Fund, said he thinks the EU would have to make a concession to defuse the situation by noting that Trump has invariably expressed concern about the rules in agricultural products.

“This will end with a deal,” he said. “This is only a matter of when it is over in the agreement for the day, week, month or six months, but ultimately there will be a settlement.”

Full Hardtalk will be available on March 14 on BBC News, iPlayer, World Service and as a podculiat.