US President Donald Trump has threatened to impose a 200% duty on all wine, champagne and spirits from France and other EU countries unless Brussels immediately lifts the duty on American whiskey. He wrote about this on his social network TruthSocial.
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“The European Union, one of the most hostile and strict tax and tariff regulators in the world, created solely to benefit at the expense of the United States, has just imposed an unpleasant 50% duty on whiskey. If this duty is not immediately abolished, the United States will soon impose a 200% duty on all wine, champagne and spirits coming from France and other countries represented in the EU. This will be a big boost to the wine and champagne business in the United States,” he said.
Trump's son Eric is one of those who could potentially benefit from the tariffs, as he is the owner of Trump Winery in Charlottesville, Virginia, according to The Telegraph.
French Trade Minister Laurent Saint-Martin said Trump was escalating the trade war he started.
“We will not be threatened and will always protect our industries,” he wrote in X.
Stocks Fall
Bloomberg reported that shares of French alcoholic beverage producers fell:
- Shares in LVMH, the owner of Moët & Chandon and Veuve Clicquot, fell 2.2%, shares in cognac maker Remy Cointreau SA fell 4.5%, and shares in Pernod Ricard lost 3.6%.
US stock markets also fell in early trading on Wall Street.
It is noted that the Dow Jones index is heading for its worst week since September 2022, and the S&P 500 and Nasdaq Composite indices are showing their weakest results in the last six months.
The S&P 500 fell 1.1%, while the tech-heavy Nasdaq Composite index fell 1.6%, reversing its big losses this week.
The Dow Jones industrial average fell 0.9% as the U.S. tariff war raised concerns that the American economy is at risk of a slowdown.
Let us recall
“Ministry of Finance” wrote that JPMorgan chief economist Bruce Kasman says that the probability of a recession in the US this year is about 40%.
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