United States: US President Donald Trump launched restrictions on all alcohol imports entering the European Union through 200% tariffs during an escalating trade dispute.
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The EU established new whiskey taxes, triggering Trump to threaten alcohol import restrictions because they implemented the measures to counter US steel and aluminum duties.
He demanded an immediate EU tariff elimination on US whiskey while labeling their trade organization “nasty,” “hostile and abusive,” and “formed for the sole purpose of taking advantage of the United States.
The spokesperson from the European Commission mentioned that “calls are being prepared” between the US and the EU to discuss the situation. It confirmed that its trade commissioner, Maroš Šefčovič, had “reached out to his American counterparts” after Trump threatened retaliation against EU tariffs on Wednesday.
Trump posted on his social media handle, Truth Social, that the tariff on EU alcohol imports would be “great for the Wine and Champagne businesses in the US,” as BBC News reported.
Shocker to Finance market
Finance markets remain shocked by this new offensive since it represents a rise in an ongoing trade war, which causes worldwide economic and consumer difficulties, including for US citizens.
On Wednesday, Trump carried out his announcement to expand US steel and aluminum tariffs by imposing a global tax rate of 25% while repealing all earlier granted shipping exemptions.
The US government implemented changes that required Chinese imports to pay minimum tariffs of 20% after issuing an initial order this month.
Trump announced plans to tax many particular imports, such as copper lumber and automobiles, through the implementation of import tariffs.
Leaders in Canada and Europe have declared the new taxes unjustifiable, so they retaliated by placing taxes on various products imported from the United States, BBC News reported.