EU Retaliates to Trump Steel & Aluminum Tariff by Imposing 50% Tariff on U.S. Spirits
E.U. was already imposing 20% VAT and additional tariffs on goods imported from U.S.
A friend in the spirits business just sent me the following statement:
It seems to me that EU leaders are being weenies once again. Trump imposed tariffs on the importation of EU steel and aluminum into the US because he wants to protect the U.S. steel and aluminum industries. Note that the EU has long maintained 20% VAT and other import duties on American steel and aluminum products, as well as all other US products imported into the EU.
Instead of negotiating about steel and aluminum—which most serious people regard as strategic industries that are critical for maintaining national security—the inveterate weenies at the EU decided to punish the American spirits industry by announcing a 50% import duty.
Punishing Bourbon and Tennessee Whiskey distillers strikes me as grossly political, given that these spirits—which are very popular in Europe—are distilled in states that strongly supported Trump in the recent election.
In response to this announcement, Trump threatened to 200% tariff on all alcoholic beverages produced in the EU. I suspect that such a tariff would be absolutely devastating for the German beer industry, the French wine, champagne, and cognac industries, and for the Italian wine industry.
On a personal note, I hope that the EU reconsider this particular spat and confine the disagreement to steel and aluminum. I write this because, apart from a few expensive California wines, I find American wine scarcely distinguishable from ethyl-spiked Kool-Aid.
I hope that the EU doubles down so Trump moves to a 200% tariff so the linguini-spined EU bureaucrats have to live with the consequences of their choices.
Come on, there are some good California wines.