Mar
In a social media post on Thursday, President Trump announced his intention to impose a 200% tariff on French wine, champagne, and other alcoholic beverages from the EU if Brussels follows through on its plan to tax American whiskey exports. This move comes in retaliation for the EU’s proposed tariffs on U.S. metals, effective Wednesday. Trump emphasized that this could benefit U.S. industries, particularly the wine and champagne sectors.
Trump Defends Tariff Strategy
Later that day, Trump confirmed he would not lift the current steel and aluminum tariffs. “We’ve been taken advantage of for years, and we won’t allow that anymore,” he told reporters in the Oval Office. He also reiterated his plans to impose reciprocal tariffs on global trade partners, starting as early as April 2.
Stock Market Reacts to Rising Trade Tensions
The ongoing trade tensions have had a noticeable impact on U.S. stocks. The S&P 500 Index slid closer to a 10% correction, reflecting growing concerns about Trump’s aggressive tariff rhetoric and a positive inflation report. European alcohol makers, such as LVMH and Pernod Ricard, saw significant declines in share prices, with LVMH dropping by 2.2% and Remy Cointreau by 4.5%.
French Officials Respond to Trump’s Actions
Laurent Saint-Martin, France’s trade minister, criticized Trump’s actions, calling them an escalation of the trade war. “We will not bow to threats and will always defend our industries,” he stated on social media. Trump had earlier attacked the EU for taking billions from American tech companies like Google and Facebook, accusing Europe of mistreating U.S. firms.
Irish Prime Minister Seeks to Defend Investment Amid Trump’s Tariff Offensive
Irish Prime Minister Micheál Martin visited the White House on Wednesday with a bowl of shamrocks and a clear mission…
EU’s Countermeasures and Impact on Trade
In retaliation for Trump’s tariffs on metals, the EU is preparing countermeasures that could involve up to €26 billion ($28.3 billion) in duties on U.S. products. The EU is set to start consultations with member states, aiming to implement new tariffs by mid-April, which could affect a wide range of agricultural and industrial goods.
U.S. Commerce Secretary Expresses Concern
Commerce Secretary Howard Lutnick voiced his frustration, asking why Europeans were targeting products like Kentucky bourbon and Harley-Davidson motorcycles, which were previous tariff targets. Lutnick hopes EU officials will reconsider and remove these tariffs through discussions.
The Future of Trump’s Tariff Plans
Trump’s tariff strategy advances, with new duties arriving soon, escalating tensions. His plan enforces reciprocal tariffs, targeting digital taxes and levies. This approach risks retaliation, affecting key sectors like autos, pharmaceuticals, and semiconductors. Economists warn prolonged disputes may disrupt global supply chains and economic stability.
Market Concerns and Economic Impact
The trade war unsettles markets, fueling recession fears and uncertainty. Despite the S&P 500 decline, Trump calls it a “buying opportunity.” He argues the downturn strengthens American industry, dismissing broader economic concerns. Economists and industry groups warn of tariffs’ long-term consequences, urging policy adjustments.
