“Shock” threat by Trump to Eu: “tariff on whiskey away, otherwise duties for wine at 200%”

Now, it is a continuous arm wrestling. The war of duties entered into a phase of conflict which can open some obscure scenarios for wine sector. A back and forth between the European Union and the US in which wine, and alcoholic drinks overall, are playing a role as protagonists despite themselves, as the appeals which multiplied by representatives of category asking loudly to keep wine and spirits out of the ongoing trade debate between the Eu and the Usa on steel and aluminum, show.
The last bet of a debate that becomes increasingly more threatening was written by President Usa Donald Trump, who, in these hours, announced a potential and heavy countermove to the decisions of the Old Continent: “The European Union – said Trump – on his social media “Truth” - one of the most hostile and abusive fiscal and price-related authorities in the world created with the only aim to take advantage from the Usa, has just imposed an unpleasant tariff of 50% on whiskey. If this tariff is not removed immediately, the Usa will impose a tariff at 200% on all wines, Champagne and alcoholic products coming from France and other countries of the European Union in a short time. It will be fantastic for wine and champagne activities in the USA”.
Making a step backward, as it is known, yesterday, customs duties wanted by the US came into force at 25% on steel and aluminum coming from foreign countries, including EU, which, announced a “strong but proportional” response. Particularly, explained Eu Commission, the European response will be articulated into two phases. “Firstly, the Commission will make the suspension of existing countermeasures towards the Usa of 2018 and 2020 expire on 2025, April, 1st. These countermeasures regard a series of American products replying to the caused economic damage of 8 billion euros of exports of steel and aluminum of the EU. Secondly, replying to new Us duties interesting over 18 billion euros of exports of the European Union, the Commission presents a package of new countermeasures on Us exports. They will enter into force by mid April, based upon consultation of Member States and of interested parties”. Overall, the countermeasures of the European Union could, therefore, be applied to the exports of Usa wares for a value up to 26 billion euros, in line with the economic capacity of Usa duties.
April is close, but, at this point, evolutions don’t look to calendar anymore. Italy attends the development with great interest, obviously, and with bated breath: wine, in 2024, registered for Italy the record of export at 8.1 billion euros (+5.5% compared to 2023, according to definitive Istat data analyzed by WineNews), mainly thanks to the growth in the Usa for 1.9 billion euros (+10.2%). If Trump threat becomes concrete, it is easy to imagine that the consequences will be very heavy for the sector.