Euro Dips As Trump Threatens 200% Tariff On EU Alcohol

Another day, another tariff-based headline…

President Trump threatened to enact a 200% tariff on European wine, champagne and other alcoholic beverages, the latest escalation in a brewing trade war between the US and the EU.

The president in a social media post on Thursday said that he would move forward with the import duties if the EU doesn’t repeal a tax on US whiskey, a measure put in place to retaliate against Trump’s steel and aluminum tariffs that went into effect on Wednesday.

The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky.

If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.

This will be great for the Wine and Champagne businesses in the U.S.

The euro sold off against the dollar…

And US futures are fading…

European spirits and drinks makers dropped on the news: LVMH, which has wines and spirits divisions, falls 2%; spirits maker Pernod Ricard -3%, cognac producer Remy Cointreau -3.4%, Davide Campari -2.8%, Diageo -0.3%

Cue the retaliatory threats from Brussels… and around and around we go.