President Donald Trump has issued a warning that he will impose a 200% tariff on alcohol imports from European Union countries unless the EU removes what he described as a “nasty 50% tariff on whisky.”
Some European alcohol producers have raised concerns, stating that such a tariff would have “devastating” effects on the industry. Meanwhile, a U.S. trade group representing distilleries has expressed its disapproval, stating, “we want toasts, not tariffs.”
This marks another escalation in the ongoing global trade war, which intensified when the U.S. implemented a 25% tariff on all steel and aluminum imports.
In response to these steel and aluminum tariffs, the EU announced plans to increase its own tariffs on up to €26 billion ($28 billion; £22 billion) worth of U.S. goods. This includes higher levies on products such as boats, bourbon, and motorbikes, with the changes set to take effect on April 1.
Amid these tensions, Canada’s Finance Minister, Dominic LeBlanc, and Ontario Premier, Doug Ford, met with U.S. Commerce Secretary Howard Lutnick to discuss ongoing trade disputes between the two neighboring countries.
Following the meeting, Ford expressed optimism, stating that he felt “very positive” about the discussions.
Tariffs remain a key component of Trump’s broader economic strategy. He believes they will strengthen U.S. manufacturing and safeguard American jobs. However, critics argue that, in the short term, these tariffs will lead to higher prices for American consumers.
Tariffs function as taxes imposed on goods imported from foreign countries. The companies responsible for bringing these goods into the country are required to pay the tax to the government.