U.S. President Donald Trump threatened on Thursday to impose 200% tariffs on EU champagne and other alcohol products, exacerbating trade tensions amid ongoing disputes between Washington and Brussels, according to ABC News.
US President Donald Trump (Photo source: Reuters)
U.S. President Donald Trump threatened on Thursday to impose 200% tariffs on EU champagne and other alcohol products, exacerbating trade tensions amid ongoing disputes between Washington and Brussels, according to ABC News.
Trump’s warning comes the day after the EU announced plans to impose tariffs on $28 billion worth of U.S. goods, including a 50% tariff on whiskey. The EU’s move is a response to the United States’ previous responsibilities for steel and aluminum imports, a point of debate in the transatlantic trade relations.
Trump urged the EU to withdraw tariffs on whiskey, noting that if it stays in place, the United States will retaliate against the group’s alcohol products “soon.” He also targeted the EU’s broader trade policy, calling the group “one of the most hostile and abused tax and tariff authorities in the world”.
European Commission President Ursula von der Leyen defended the EU’s decision in a statement the day before and asserted that the group “must take action to protect consumers and businesses”.
ABC News reported that planned tariffs on U.S. goods reflect the EU’s strategy to offset the economic impact of U.S. trade measures. The latest exchange of tariff threats has had a direct impact on financial markets. Stock futures fell earlier on Thursday, reversing earnings from the previous day of the S&P 500 and the Nasdaq. Dow Jones Industrial Average Futures also showed signs of further decline, with losses starting from Wednesday’s trading.
The deadlock between the United States and the EU is part of a broader trade conflict that has seen retaliation from other major economies. Canada has previously responded to U.S. steel and aluminum tariffs, which are through charging its own levies on $20 billion worth of U.S. goods.
Meanwhile, the Trump administration recently raised tariffs on Chinese imports to 20%, prompting China to impose retaliatory tariffs on U.S. agricultural exports, further escalating tensions between the world’s two largest economies.
The ongoing trade dispute has attracted attention to the potential downturn. Last week, Goldman Sachs increased its probability of a projected recession from 15% to 20%, while Moody’s analysis adjusted its estimate to 35%, citing increasing risks posed by global trade uncertainty.
Apart from the title, the story has not been edited by the DNA staff and has been published from ANI.
