Trump threatens the EU with 200% tariffs on wine, champagne, and other alcoholic beverages

WashingtonUS President Donald Trump has threatened the European Union with 200% tariffs on "all wines, champagnes, and spirits." He did so on the Truth Social network, where he also stated that the EU "is one of the most hostile and abusive tariff authorities in the world," and that he will carry out this threat if Europe does not withdraw the tariff on bourbon announced this Wednesday.

Trump has insisted that the European Union was created for the sole purpose of "taking advantage" of the United States and has made it clear that the new tariff would be imposed on alcoholic beverages from France and other EU countries: "This would be great for the wine and spirits businesses."

Trump wants revenge for the 50% tariff on bourbon whiskey, one of the countermeasures proposed by the European Union In response to the Republican president's announcement of imposing 25% tariffs on European steel and aluminum, Brussels announced its intention this Wednesday to apply tariffs to iconic American products: in addition to bourbon, to Levi's and Harley-Davidson brands. The community blog thus gave the first response to Donald Trump's trade war, a countermeasure worth a total of 26 billion euros.

The US president continues to destabilize the global economy with his tariff threats. The chaos is no longer just general due to the constant threats or the application of aggressive trade tariffs against China and certain countries, but also because Trump's constant actions and undoings. His two neighbors, Mexico and Canada, saw the 25% tariffs go into effect on March 4, only to find that Trump had postponed them again two days later.

The Ottawa case was even more ludicrous, as Trump had publicly asserted that Canada was not doing enough to control the flow of fentanyl into the United States and therefore would not postpone the tariffs. The next day, without warning, the memorandum he signed to extend the pause in Mexico also included Canada.

The confusion has continued to perpetuate itself in the trade war that Trump has insisted on waging. This Tuesday, Trump threatened to double the tariffs on Canadian steel and aluminum (which would bring the tariffs to 50%). Hours later, the White House backtracked and said they would not be 50%. Trump stated in a roundtable with CEOs that the tariffs would be higher than 25%. But he also did not specify whether he was referring to Canadian steel and aluminum. The issue was not resolved until the 25% trade tariffs went into effect.

Beyond the threat of 200% tariffs on imported alcoholic beverages from the EU, the main concern for European partners is the announced 25% tariffs that are due to take effect on April 2. Europe is working to try to change Trump's mind, although so far it doesn't seem to be succeeding. The reality is that the president sees tariff policies as a way to exert force within geopolitical relations. Trump not only seeks to lower the trade taxes the EU applies to US products but also to reindustrialize the United States.

While Europe has been pushing for decarbonization for years (which involves closing some of the continent's large factories), Trump has said he wants to return to doing business with coal and oil. In a context of strong tariff pressures on European manufacturers, who must also deal with the energy transition, Trump's message of recarbonizing the US and offering advantages for manufacturing within the country may be attractive. Or at least that's the logic with which the US president is carrying out the trade war against Europe.

Impact on Catalonia

The tariffs are expected to have a negative, but limited, impact on the Catalan wine sector. In 2023, the wine industry represented 1.2% of Catalonia's gross domestic product (GDP, the indicator that measures economic activity), with more than 1,300 companies and employing more than 10,000 people, according to data from Acció, the Catalan government's foreign promotion agency.

The thickness of Catalan wines and cavas are consumed in Spain: for example, in the case of companies from the Cava Designation of Origin (one of the largest exporters), income from abroad represents approximately a fifth of turnover. As for the United States, it is the second largest market for Catalan wineries and one of those that has led export growth, but it does not have a significant enough influence for tariffs to threaten the viability of the vast majority of wine companies operating there.

In this regard, this week, those responsible for the collective sparkling wine brand Corpinnat (which sells 17% of its production outside the country) indicated that they expected an increase in tariffs in the US, but that they did not foresee it representing a disaster for the associated companies because, despite being...

In addition, some larger companies, such as Freixenet, already have their own wineries in the United States and produce wines that, because they are produced in North American territory, are not affected by tariffs.