President Trump announced a potential 200% tariff on European alcoholic beverages in retaliation for the EU's new 50% tariff on American spirits. This trade dispute follows Trump's implementation of a 25% tariff on aluminum and steel, which the EU deemed unjustified, prompting them to levy tariffs on nearly $28 billion of U.S. goods. This escalating tit-for-tat has raised concerns in the financial markets, with the S&P 500 index dropping significantly. The EU's response includes reinstating previous trade penalties, with additional tariffs planned in the coming weeks.
"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.," Trump stated.
The European Commission labeled the measure an "unjustified" trade action and swiftly implemented countermeasures, raising tariffs on $28 billion worth of U.S. goods, including motorcycles, bourbon, peanut butter, and jeans.
Following the tariff announcements, U.S. markets fell. The S&P 500 was down 1.4% in late-day trading on Thursday, continuing a slide of roughly 3.49% over the last five days.
The EU plans to roll out additional trade penalties in two phases: On April 1, it will reinstate "rebalancing measures" that had been in place between 2018 and 2020 but were suspended under the Biden administration.
Collection
[
|
...
]