Trump threatens 200% tariffs on French wine, sparking trade war fears

President Trump has threatened a 200% tariff on European wines and alcoholic products in retaliation for the EU's recent 50% tariff on American whiskey. This potential move has caused significant concern among French wine producers, like Florence Cathiard of Chateau Smith Haut Laffite, who fear such tariffs could devastate their sales in the U.S., which represents a crucial market for them. The French wine industry is already reeling from past tariffs, which saw sales to the U.S. plummet by 40%, costing the sector €500 million. Additionally, bourbon distillers like Brough Brothers in Kentucky are also facing challenges as they attempt to expand into international markets like Canada and Europe amid the ongoing trade tensions. The EU is urging Brussels to protect its wine and spirit industries from retaliation, fearing a repeat of the damaging tariffs from Trump's first term. Overall, the escalating trade war poses serious threats to the livelihoods of those in the wine and spirits sector on both sides of the Atlantic.