In the commercial showdown between the United States and the European Union, a new episode rekindles tensions. Indeed, Donald Trump, faithful to his protectionist approach, again brandished the threat of massive customs duties, this time on European wines and champagnes. The announcement of a 200 % tax on these products follows Brussels's decision to increase customs tariffs on American whiskey 50 %.
A rekindled commercial showdown
The American president threatened, Thursday, March 13, to impose 200 % customs duties on European wines, champagnes and spirits. An announcement that follows the European Union's decision to increase taxes on American whiskey by 50 %. “If these customs duties are not immediately withdrawn, the United States will quickly impose 200 % customs duties on all wines, champagnes and alcoholic products from France and other EU countries,” declared Donald Trump on Truth Social. He accuses the EU of being “one of the most abusive and hostile authorities in the world on taxes and customs duties”.
This new episode is part of a cycle of trade tensions initiated from its first mandate, marked by an aggressive taxation policy. The EU had already retaliated to American surcharge on steel and aluminum (25 %) by a sanction on several American products, including Bourbon and motorcycles. Thus, the White House now intends to reply with the same punitive logic.
The impact of this decision would be devastating for the European wine industry. In addition, the United States is the first French wines and spirits export market, with a turnover of 3.8 billion euros in 2024, according to the Federation of Wine Exporters of France (FEVS). 200 % taxation could lead to a collapse of sales and a major loss of competitiveness against local producers and South American wines.
Professionals in the sector denounce trade instrumentalization. “We are tired of being systematically sacrificed for subjects unrelated to ours,” deplores Nicolas Ozanam, Managing Director of FEVS. The European Lobby Spirittes Europe also calls for “stopping to use” the sector “as a currency in conflicts that have nothing to do with it”.
An industry taken hostage in a geopolitical conflict
While the president of the European Commission, Ursula von der Leyen, says that the EU is “open to negotiation”, the political response is organized. François Bayrou, French Prime Minister, immediately reacted: “We cannot be defeated by threats of this order”. His Minister of Foreign Trade, Laurent Saint-Martin, insists: “We will not give in to threats and will always protect our sectors”.
Its electoral base, in particular in the producing states of whiskey like Kentucky, applauds these protectionist measures. Bourbon European taxation has been perceived as an attack on an emblematic industry in the United States. Trump thus seeks to demonstrate his firmness in the face of the EU while strengthening his image of defender of the American economy.
Previous customs conflicts have shown that these measures can quickly extend to other sectors. In 2018, the Trump administration had already imposed surcharge on French wine as part of the Airbus-Boeing conflict. Today, the fear of a domino effect is felt. A commercial escalation could affect other luxury industries, agricultural exports or even the technological sector.
- American retaliation taxes could expand to other European products;
- An increase in customs tariffs could slow down the investment of European companies in the United States;
- The financial sector and currencies could be affected by commercial uncertainty.
The outcome of this showdown remains uncertain. A diplomatic compromise is always possible, in particular via a renegotiation of customs tariffs. However, the electoral dynamics in the United States could encourage Trump to maintain a hard posture against Brussels. If no agreement is reached, the spectrum of an prolonged trade war could weigh on the world economy, financial markets and even the confidence of investors in international trade. One thing is certain: the battle of wine has only just begun.
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