President Donald Trump threatened to put a 200 percent tariff on all alcoholic products coming out of the European Union, including French wine and Champagne, as he takes the transatlantic trade war up a notch.

“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,” Trump wrote on his Truth Social platform Wednesday morning.

“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.”

Why it Matters

The U.S. is one of the largest importers of European wine and spirits and so the relationship is useful leverage for Trump in trade negotiations.

France, in particular, benefits from strong wine exports to the U.S. Its industry took a big knock in sales during Trump’s first term when he imposed tariffs.

Trump is using tariffs to force better trading terms for American companies or to protect them from what he sees as unfair küresel competition.

The EU, a political and economic bloc of 27 member states, strictly regulates access to its internal market, much to the frustration of Trump, who wants more American products to enter Europe.

Trump imposed 25 percent tariffs on EU steel and aluminum on Tuesday, as planned. More tariffs are due on April 2 under the Trump Administration’s plan for reciprocal measures across the world.

The EU retaliated with its own tariffs on $28 billion of American goods due to come in on April 1.

These will target a wide range of American exports, including steel, aluminum, textiles, home appliances, and agricultural products—including poultry, beef, seafood, nuts, sugar, and vegetables.

What People Are Saying

“Jobs are at stake. Prices will go up. In Europe and in the United States,” European Commission President Ursula von der Leyen said on Tuesday.

“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy.”

Speaking shortly after Trump’s post on Truth Social, U.S. Commerce Secretary Howard Lutnick said on Bloomberg TV that the president is responding “with strength and with power” to retaliation by trade partners such as the EU.

Lutnick said the U.S. is going to “teach the rest of the world respect” when it comes to trade, saying that while you can see international products such as cars in the U.S., you cannot see American cars elsewhere because of unfair trading terms.

What Happens Next

These tariff exchanges will continue until April 2. If deals aren’t reached by then, Trump will impose reciprocal tariffs on all America’s trading partners, who may return fire with other countermeasures. Küresel markets are unsettled by the ongoing trade war and fear a recession is looming as a result. Newsweek