[A photo of a glass of wine, Photo Credit to openverse]

President Donald Trump extended his on-going trade war with Europe to include imports of alcohol.

This move adds to Trump’s new tariff policy, following his promises of 20% tariffs on Mexico and Canada, and over 60% tariffs on China, among others.

The president announced on Truth Social that he would enact further import duties if the Netherlands began taxing American whiskey exports, which itself was a response to America’s tariffs on steel and aluminium.

“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,” wrote President Trump.

The president further clarified that the 200% tariff on European wine and spirits will follow through if the European Union (EU) refuses to back down from counter tariff threats.

This feud between the two traditional trade allies started with a 25% tariff on steel and aluminum.

In response, the EU planned to impose 50% tariffs on American whiskey, to which Trump retaliated with a 200% tariff on European wine, champagne, and spirits.

Like with previous tariffs, the Trump administration stressed that the negative impact of tariffs on foreign trade will be temporary and ultimately bring a bigger turn-out.

Treasury Secretary Scott Bessent further explained the motive behind such tariffs, “We’ve got strategic industries we’ve got to have. We want to protect the American worker. A lot of these trade deals haven’t been fair.”

On the other hand, the E.U. called the conflict a lose-lose situation.

European Commission spokesman Olof Gill said the EU was “prepared for whatever might come, and we have been preparing for over a year,” while still calling for talks to calm trade waters. 

Public opinion for the use of tariffs by the Trump administration has been split both by continents and within the United States.

According to a poll held shortly after the 2024 election, many Europeans see America as less of an ally with aligned interests, and more as a necessary partner whom they must strategically cooperate with.

In some populist right countries like Hungary, there persists a new affection for the US, but for the majority of Europe such opinions fade as the superpower takes an “America first” stance.

The negative critique continues within the US as Congressman Morgan McGarvey raised concerns of a trade war with Europe over alcohol.

“They raise our costs at home, and they hurt people in terms of their jobs,” said McGarvey.

He went on further to claim that the 47th president’s overall constant back and forth tariffs are harmful.

The tariffs on European alcohol represent only one of several precursors to an all-out trade war on a global scale.

In a statement by the White House on February 1st, the Trump administration made clear their intentions to use tariffs as a method of ensuring not only growth of the American economy, but to ensure other interests such as stricter border control and discouraging China from hostilities against the US.

In accordance with this official statement, President Trump has announced tariffs on China, as well as traditional American allied countries like Canada, Mexico, and South Korea.

This has made a massive impact on both foreign relations and various industries, with some parties potentially subject to such tariffs trying to appeal for an exemption, while some nations have chosen to threaten counter tariffs of their own.

This use of tariffs in economic and geopolitical disputes has already reached the stock market.

The S&P 500 Index dropped nearly 10% from a high in February, raising speculations of a recession.

Trump weighed in on the drop citing it as a buying opportunity and a necessary step in remaking American industry and supply chains.

Such recent developments demonstrate the complicated balance stock markets and geopolitics are tangled in, as investors, economists, and nations try to navigate such circumstances.