US President Donald Trump threatened to escalate a trade war with the European Union after the bloc announced a 50% tariff on US ruou vang and some other items, effective from April 1. The EU's tariffs aim to meet a series of US tariffs on aluminum and steel effective on March 12.
If this tax rate is not lifted immediately, the US will soon impose a 200% tax on all wine, ginseng and alcoholic products originating from France and other countries represented by the EU, Donald Trump warned on March 13.
The comments came a day after EU leaders said they would respond to the 25% tariffs the US has imposed on aluminum, steel and related products.
The bloc of 27 countries plans to react in two rounds: First, impose a tax of up to 50% on US goods, including Harley- Davidson motorbikes and bourbon Kentucky, effective from 1.4; and second, a series of measures applied from mid-April targeting important agricultural products and industrial goods in important election areas dominated by the Republican Party in the US.
European leaders also clarified that they do not want to impose tariffs and want to negotiate with President Donald Trump.
This is not the first time the alcohol and beverage industry has been caught up in a trade war. Lighter tariffs have been imposed on alcohol and other alcoholic beverages during Trump's first term.
