Trump threatens 200% tariff on EU alcohol imports

(Sharecast News) - Donald Trump's tariff saga continued on Thursday as the US President threatened to impose a 200% tariff on the European Union's alcohol imports if the bloc does not remove its tariffs on US whiskey. In a post on Truth Social, Trump said: "The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% tariff on whisky.

"If this tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.

"This will be great for the wine and champagne businesses in the US."

On Wednesday, Trump's 25% tariffs on steel and aluminium came into effect globally, prompting retaliatory measures from the European Union and Canada, with the UK holding back but reserving the right to retaliate.

The European Union said it would impose counter tariffs on €26bn of US goods starting next month.

As far as Canada is concerned, Trump rowed back on his decision to double US tariffs on their steel and aluminium imports to 50%, just hours after making the announcement on Tuesday. This came after the province of Ontario suspended new charges of 25% on electricity that it sends to some northern states in the US.

US tariffs of 25% will still take effect from 12 March, however.

Canada responded by announcing the imposition of 25% reciprocal tariffs on nearly $30bn-worth of US imports into the country. The measures will affect around $12.6bn of US-made steel and $3bn of aluminium, as well as $14.2bn of other American goods such as computers, cast-iron products and sports equipment.

The duties, which cover $29.8bn of products, are effective from Thursday.